Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers.
A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for themself or on behalf of another person or institution. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends.
Explanation:
Traders are individuals who engage in the short-term buying and selling of an equity for themselves or an institution.
Among the drawbacks of trading are the capital gains taxes applicable to trades and the costs of paying multiple commission rates to brokers.
Traders can be contrasted with investors, who seek long-term capital gains rather than short-term profits.
People used to swap items along with items they deemed to be currency for items other people had. A swap occurred when both figures saw the transaction as fair. Things of trading could include stock, cattle, land, and more
