Trading refers to the activity of buying and selling financial instruments like stocks, bonds, currencies, commodities, or derivatives with the goal of making a profit¹. It involves purchasing and selling securities, such as stocks, bonds, currencies, commodities, and derivatives¹. Traders can include individuals, institutional investors, and financial institutions¹.

Trading differs from traditional investing mainly in its short-term focus, contrasting with the long-term perspective of traditional investing¹. In the stock market, trading is common as people buy and sell shares of listed companies¹. Share prices fluctuate constantly, giving traders the opportunity to choose the right moment to make a profit¹.

Shares: Trading in individual company stocks, allowing you to buy and sell ownership stakes in specific businesses.
Indices: These are indicators that represent a basket of stocks or assets, allowing you to predict the overall performance of a group of companies or markets.
Forex: The foreign exchange market, where you can trade currency pairs, taking a chance on the relative strength or weakness of one currency against another.
ETFs (Exchange-traded funds): These are investment funds that hold a collection of assets like stocks, bonds, or commodities. Trading ETFs allows you to gain exposure to a diversified portfolio.
Bonds: You can trade bonds, which are debt securities issued by governments, municipalities, or corporations, providing fixed income in the form of periodic interest payments.
Commodities: Trading in raw materials and primary agricultural products, including precious metals, energy resources, and agricultural goods.
IPOs (Initial public offerings): Participating in the initial issuance of shares by a company when it goes public, potentially gaining from the stock's early price movements.