We can use trading platforms to trade various securities and increase the value of our assets. Anyone can do trading in the market using trading platforms as it is easier and quicker.
What is trading?
Let’s first understand what trading is. Trading, in a nutshell, is the buying and selling done to make a profit. It is carried out in the stock exchange by registered stock brokers.
Parties involved in trading:
Anyone can indeed trade using a platform. Yet, are categorized into different groups with their activities.
Traders:
There are two basic categories of people who want to buy or sell securities or commodities on the Trading Platform.
• Traders: These include those who buy securities and sell them quickly to make a profit. It is also known as the buy and sell strategy.
• Investors: These include those who buy securities and keep them for a longer time to gain more profit and value. It is also known as the buy-and-hold strategy.
It is not necessary that one has to choose between these two and strictly stick to it. One can invest and trade simultaneously as well. It helps people to diversify their portfolios.
Brokers:
The intermediary or middleman, who carries out trade in the market, are known are brokers. They are approved and registered in the stock exchange. They either work individually or work in a broking firm. Broking firms operate the majority of the trading platforms.
Stock exchange:
It is the marketplace where the trade between the buyer and seller takes place. There are many stock exchanges in India that the trading platform uses for trade.
This stock exchange may operate regionally based on their location or internationally irrespective of the trader’s location. The stock exchanges have to adhere to rules set by the securities exchange board relevant to them. This is to eliminate and control illegal trade practices in the marketplace.
