TRADING
BASICS
Trading, like any other activity, requires a systematic approach. Understanding market entry and exit points is just the tip of the iceberg. No less important questions are — what and why is it better to trade?
We will help You understand what an exchange is and how to make money on it, as well as choose the most convenient trading strategy.
An exchange is a place where transactions are concluded between buyers and sellers, most often using the services of intermediaries. Such intermediaries represent on the exchange the interests of both producers of goods and owners of securities, as well as the interests of their buyers.
Exchange device
Feature of exchange trading
Advantages of trading on the stock exchange
Traders
Exchange device
It is an organized market where the rules of perfect competition apply. Prices are formed solely under the influence of supply and demand and are published daily. They are recorded and then published at the beginning and end of the working day. All market participants are provided with the same conditions for making transactions and performing trading operations. All market participants are subject to the same rules that are established on the exchange. Exchange transactions are conducted on the basis of an auction for the purchase and sale of raw materials, goods, securities and currency.
Feature of exchange trading
Exchange trading does not imply the physical presence of trading items – goods and securities-at the time of the transaction. The presence in warehouses of goods of appropriate quality and in sufficient quantity, as well as securities in banks with ownership rights to them, is confirmed by relevant documents.
All participants of exchange transactions have advantages from trading on the exchange:
  • Suppliers on the exchange are profitable to sell their products;
  • Buyers get free access to information about products and prices, and have the opportunity to use free competition between sellers for their own benefit;
  • Exchange players receive commissions for their trades
Traders
Traders are divided into professional and non-professional market participants.

Professional traders should have a specialized education. The difference between a professional trader and a non-professional trader is that a professional trader is completely independent in making their decisions.

On the one hand, this is a greater risk, but on the other hand, the result of the activity depends solely on the professional trader.

Pros:
  • With a successful combination of circumstances and professionalism, you can earn a lot of money;\
  • Independence (for a professional trader);
  • The excitement of a constant game.
Cons:
  • Risk of losing;
  • The attitude of citizens to the market of the fraudsters and speculators;
  • High emotional tension.
Today, there are a large number of different educational institutions that specialize in teaching the trading profession, including training courses, seminars, webinars, and so on.

MG provides You with the necessary materials and knowledge to successfully master trading.