Trading refers to the buying and selling of financial instruments with the ultimate goal of making a profit. These instruments can include a wide range of assets that are assigned a financial value that may rise or fall, and you can trade based on the direction you think they will take.
No matter what instrument you are trading, the desired outcome is always the same: to make a profit. If your prediction about the market’s movement is correct, you will make a profit. However, if the market moves against your position, you will suffer a loss.
Trading differs from investing in terms of the methods used to make a profit and whether you take ownership of the asset. Traders make profits by buying low and selling high (going long) or selling high and buying low (going short), usually over the short or medium term. Since traders are only speculating on the future movement of market prices, whether bullish or bearish, they do not gain ownership of the underlying asset.
In 2021, retail traders accounted for 23% of all US equity trading, double the figure from 2019, buying over $1.9 billion in stocks. This increase was largely attributed to the unprecedented volatility in stock prices caused by the Coronavirus pandemic.
Some financial traders specialize in a particular instrument or asset class, while others have more diversified portfolios. Governments and institutions can adapt more quickly, as they often have departments that focus on trading in different sectors and industries. Institutions remain the largest participants in the market, with about 77% of trades attributed to them.
List of Top 7 Trading in India (BSE) based on Net Sales.
Company Name | Net Sales (Rs. cr) |
Adani Enterpris | 67,324.71 |
Redington | 35,341.44 |
Amrapali Ind | 29,068.44 |
Sundram | 4,919.43 |
SEL | 2,855.87 |
Competent Auto | 1,731.53 |
Uma Exports | 1,431.60 |
Source: BSE, India, last updated 26 February, 2024
This news is a creative derivative product from articles published in famous peer-reviewed journals and Govt reports:
Reference:
1. Balu, O. F., Stancu, I., & Bran, A. G. (2014). SWISS COMMODITY TRADING MARKET AND GLOBAL ECONOMY-RECENT ADVANCES AND CHALLENGES. Calitatea, 15(S1), 340.
2. Nehme, J. J., Srivastava, S. C., & Aman, A. (2023). How ‘Zerodha’Used Technology to Disrupt the Indian Stock Trading Industry?.
Disclaimer: This news is for information and research purposes only. It is not intended for financial advice.
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