Trading it means negotiating financial instruments, with the aim of obtaining a capital gain from the price change that occurs starting from the moment of purchase.
The term online trading is in fact used in a distinct way from simple investment. In fact, by investment we mean the purchase of securities to be held for months or even years. Trading, on the other hand, is usually intended for the short (or even very short) term.
Index
- Trading, simple explained meaning
- What does Forex trading mean?
- What is a trading company? Precise meaning.
Trading, simple explained meaning
Second Wikipedia online trading, also known by the English acronym TOL, is the buying and selling of financial instruments via the internet. With this definition, which specifies "through the internet", Wikipedia effectively matches trading with online trading.
In the free encyclopedia it is also immediately highlighted that in Italy it is a practice that only arrived in 1999.
This explanation is correct, if a little too general. In fact, although it is specified later that it concerns the online purchase and sale of financial instruments (including shares, bonds and futures), it must be said that today online trading means above all trading with CFDs.
In common use, in fact, CFDs are the main financial instrument used for online trading. CFDs allow you to trade up and down on any financial instrument listed on the market.
This therefore means that with CFDs you can trade on shares, commodities, Forex, stock market indices, but also on cryptocurrencies.
Does trading mean trading CFDs?
Most of the time, trading means trading with CFDs. Online CFD brokers are numerous and easily accessible. Precisely because of their large number, it is always necessary to know how to distinguish the best brokers from those that could give some problems (mostly the unknown ones).
So, to answer your question, while trading technically generally means trading in financial instruments, this term usually means trading with CFDs.
In this regard, we highlight that we have prepared a complete guide to CFDs, which can be consulted for free on our website, as often as you wish.
What does Forex trading mean?
Very often the word Forex is associated with the word trading. Forex trading is so popular that these two terms are often even confused with each other. Obviously, this happens especially when you don't know the basics yet.
Do trading sul Forex means trading up and down on currency pairs. A currency pair consists of two currencies, whose price relationship is called the exchange rate.
Therefore, when you hear about the euro dollar exchange, you are actually hearing about Forex. The relationship given by the value of the euro and the dollar, which is created on the market based on purchases and sales, is called the exchange rate.
With CFDs it is possible to trade on the Forex exchange rate. You may decide, for example, to negotiate upwards on the exchange rate to obtain results proportional to the rate increases. Conversely, you can also decide to trade downwards on the exchange rate to obtain results proportional to the exchange rate decreases.
What is a trading company? Precise meaning.
A trading company is a company that offers trading services. Generally, trading companies are referred to as brokers, which in fact also represent an intermediary.
Online broker companies offer the tools to trade online. For example, the trading company eToro offers several services including:
- Tradable CFDs
- Trading platforms (a webtrader and MetaTrader 4)
- Secondary services such as technical analysis and signals provided by external companies
- Customer support service
These are the basis of the best CFD brokers, therefore the other trading companies mentioned on the pages of our site are also of the same level.
La choosing a trading company rather than another it may depend on a number of factors, such as those highlighted in our article on broker opinions and reviews.
Trading service, meaning and examples
trading service means the supply of negotiable financial instruments, associated with other ancillary services.
In the previous paragraph we have listed some elements that can be part of the trading service. In addition to Tradable CFDs, a trading service must necessarily also include a trading platform.
The trading platform allows you to place orders, i.e. to trade with. It can be represented by downloadable software, or by a webtrader-type platform, which can be used from your browser.
Brokers can offer platforms of their own production (e.g. the Plus500 platform) or, in addition, external platforms. This is the case of MetaTrader 4, a professional trading platform offered by the broker eToro.
You can get more information about these brokers by reading our dedicated full reviews:
- Plus500 review
- eToro Review
However, there are many interesting CFD brokers, so we also advise you to evaluate others including eToro and FxPro.
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