Stock trading is the buying and selling of company shares on the stock exchange to profit from price fluctuations. Traders aim to profit from the difference between the purchase and sale prices of stocks in the short term, unlike long-term investors. To get started, you need to gain basic knowledge, choose a broker, open an account, and use a trading terminal.

How stock trading works

Buying and selling: Traders execute trades through a broker who provides access to the stock exchange.

Price speculation: The goal of trading is to profit from price differences by buying stocks at low prices and selling them when the price rises.

Liquidity: Stocks are highly liquid, making them easy to buy and sell when the market is active.

Diversity: Stocks are available across different sectors and regions, allowing for portfolio diversification.