Trading in usual terms is exchanging one thing for other. Trading is exchanging something like a product, item or service with money, simply buying something. When it comes to financial market, the trading principle remains the same, however, the product changes. In the financial market, we trade shares.
When a person buys a share, they are actually buying a small part of the company. When the market value of those shares increases, people make money by selling them out at a higher price. This simple process is known as trading.
There are various trading strategies which traders use for a successful trading. But at the base lies the same concept wherein you buy at a price and sell at a higher price, making a profit. Hence when it comes to buying, people look for as low rate as possible, thereby increasing their margin for profit.
Generally, the trading strategy is a plan which has been devised to gain profitable return by playing long or short in the market.
Types of trading strategies are:
- Swing trading strategy
- Scalping trading
- Day trading
- Trading on the news
- Trading signals
Earlier, the financial trading was solely done electronically between the financial institutions and Banks. This meant that the trading in markets was confined to only people who worked in these institutions and closed for outsiders. However, with the onset of Internet, anyone who is interested in trading can trade online. One can trade almost everything online from currencies to commodities and stocks to goods.
While trading, it is also important to choose the low brokerage trading to avoid unnecessary expense and keep the earning prospects high. While choosing the broker with the lowest brokerage, what counts is the brokerage that is being charged per trade. The next factor to be considered is the transaction charge, which differs from broker to broker. It is mostly calculated on per crore basis. The transaction charge rate also varies depending on the trading segment and the exchange.
You need to be careful while finding a reputed company offering the lowest brokerage for trading in India so as to maximize the returns along with the expert guidance.
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