The world of trading is vast. In the article below, we tried to explain and summarize some ideas

• What is trading?
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The term 'trading' simply means 'exchanging one asset for another'. It usually concerns the exchange of financial instruments or, in other words, the purchase of something for a sum of money.
Where you buy a financial asset at a certain price and then sell it again at another price – hopefully higher, allowing you to make a profit.
When we talk about defining trading in financial markets, it is the same principle. Think of trading stocks. You are actually purchasing shares of a company in exchange for money. If these shares increase in value, you make money by selling them at a higher price. This is called trading.
But why do stocks increase in value? The answer is simple: value changes mainly because of supply and demand, where the greater the demand for something, the more people are willing to pay for it. Another reason is the companies' financial reports and profits, as well as their important news that affects their stock prices.

• What is online trading?
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It is the trading of various financial assets through a trading account with an online trading broker without having to go to the actual stock exchange, but through an electronic trading platform that gives you direct access to the financial markets and place buy and sell orders through them.

For a long time, financial transactions were conducted only electronically between banks and financial institutions. This meant that trading in financial markets was closed to anyone outside these institutions.

With the development of the Internet, anyone who wants to engage in trading can now do so online.

In fact nowadays there are many online brokers that can be accessed with a very small capital. These companies will provide you with a trading platform, which will allow you to connect to the real-time market, place trading orders and view and analyze live charts.

Almost anything can be traded online: stocks, currencies, commodities and a whole host of other financial instruments – at this point you don't need to worry about all of that. For now, keep in mind that if you want to trade something specific, it is most likely possible.

Therefore, online trading is possible from anywhere you are connected to the Internet and have a trading platform from one of the trusted electronic trading companies.

• What is currency trading?
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Forex trading is the same as trading in the foreign exchange market (Forex). It is the largest financial market in the world with a daily trading volume of over $6 trillion. Currency trading involves buying and selling foreign currencies according to their exchange rate rises and falls in order to profit from these movements.

Currency trading (Forex) is speculation on the movement of currency prices by buying one currency and selling another at the same time. Advertisement Currency values rise and fall relative to each other due to a number of economic, geopolitical and technical factors.

The Forex market consists of currencies from all over the world. The multiple factors that can influence price movements make predictions on exchange rates difficult. However, like most financial markets, Forex is primarily affected by the laws of supply and demand, and it is important to understand what these laws are and how they cause price fluctuations.

There are two different types of Forex markets:
1- Spot Forex Market: This is the physical exchange of currency pairs, which occurs at the precise moment of settlement of the transaction or after a short period of time.
2- Forex futures market: A contract is created to buy or sell a specific amount of currency at a specific price, which expires on a future date (or within a range of future dates).

• How trading works?
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There are different ways to practice Forex trading, but they all work the same way: buying one currency and selling another at the same time.

Traditionally, Forex trading was done through a traditional broker, but thanks to online trading providers, you can now invest wherever you are.

Forex trading is an activity, if not a profession, of buying and selling currency pairs for anyone with a computer, mobile phone and internet connection.

Trading is a daily and international activity. Governments, companies, and even individuals trade currencies every day.

These exchanges occur through computer networks between traders around the world. This is the main reason why the forex or currency market is the largest and most liquid market in the world.

What is a base currency?

The base currency is the first currency in the pair, while the following currency is called the secondary currency. Forex trading always involves buying one currency and selling another, which is why we list them as pairs.

The price of the pair is determined by calculating the value of one unit of the first currency in the second.

• Demo Trading:
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The definition of demo trading is trading on a demo account with virtual money in a similar environment to live trading but without risk. It is a way for anyone who wants to test trading to see how the trades go in real time. This is a virtual way of trading which means you do not have to risk your own capital.

You can search for stocks, analyze them, specify entry and exit points, and choose order types. It is exactly as if you were trading on a real account.

But instead of doing these trades on the live market, you can match them on a demo account. In order to learn from your operations, you must record all the details. You can write them in a trading diary or use a custom spreadsheet.

By following trading on a demo account, you make the same decisions as if you were trading with a real account. Therefore, you will need to be prepared to decide when to buy and when to sell, and to analyze and use technical indicators on trading charts.

Record or write down what happens to see how your trading decisions pay off.