Trading, or market operations, was historically carried out from the trading room of a financial institution or stock exchange. Since then, many sites have flourished.
What is trading?
Trading is a word commonly used to designate buying and selling operations carried out on the financial markets. These operations are carried out by traders from the trading room of a financial institution or stock exchange, or from the Internet in the case of independent traders. Day trading is the activity of speculating on financial products (stocks, financial options, futures contracts, currencies, etc.) in the hope of making a profit in the short term based on market fluctuations. Trading also defines the discipline of trading, which is now taught in business schools or by independent professionals. In addition to technical analysis, which is the basis for the behavior of financial market participants, trading education can also include financial risk management, monitoring of market operations, and prevention of financial crimes, among others.
The risks of trading
Financial products developed to attract individuals present a financial risk. On the one hand, there is the risk of market volatility and on the other hand, there is the risk of excessive use of leverage (the ability to multiply an exposure on a financial market by immobilizing only a part of one's capital). There is also the risk of fraud. With the Internet, many unregulated trading platforms advertise falsely. The Autorité des marchés financiers (AMF) has drawn up a blacklist of unregulated trading platforms. And finally, there is the risk of addiction as in gambling.
Learn to trade
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To avoid scams, it is recommended to learn about the basics of trading. But be careful not to be taken in by trading training organizations that offer to make you rich. No trading course can guarantee a financial return. When selecting a first training course, you should look for an honest organization that is able to talk about the main trading concepts, opportunities, and risks. Note that there is no need to pay large sums of money for your first trading course.
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