Financial trading describes the buying and selling of assets in financial markets. You can trade anything from stocks, commodities, indices, foreign exchange, and more.
People and companies often trade financial instruments because they need the assets for themselves or their business. For example, you may be travelling from Europe to the USA and want to convert euros to dollars. To do this you would participate in the forex market.
However, most of the time financial traders don’t need the assets at all. They are speculating the financial markets looking to make a profit from movements in the price, for example by buying low, then selling high.
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