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Trading: An Overview

Trading involves the buying and selling of financial instruments like stocks, bonds, commodities, and currencies. It's a fundamental activity in financial markets, enabling price discovery and liquidity.

Types and Strategies

There are several types of trading, including day trading (short-term), swing trading (medium-term), and position trading (long-term). Traders employ various strategies such as value investing, focusing on undervalued assets, and momentum trading, capitalizing on market trends.

Financial Instruments

Key instruments traded include stocks (equity in companies), bonds (debt securities), commodities (raw materials), and forex (currency pairs).