Here you can discuss and ask questions related to the course section “Trading Basics”
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…direct from investopedia…
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What is a trading exchange?
An exchange is a marketplace where securities, commodities derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public. -
What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself. -
What is margin trading?
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount. -
What is the difference between Bid and Offer (or Bid and Ask)
The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask. The difference between bid and ask prices, or the spread, is a key indicator of the of the asset. In general, the smaller the spread, the better the liquidity. -
What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.
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What is a trading exchange?
A meeting point for exchanging something like one cryptocurrency for another. -
What do brokers do?
Connect buyers and sellers -
What is margin trading?
Where you lend money to leverage a trade. Especially on small time frames where it’s in relation to small price movements. -
What is the difference between Bid and Offer (or Bid and Ask)
One is buying the other selling. Also the difference in price between those that want to buy and those that want to sell. It can be a large amount. -
What is the leverage?
Leverage is when position size is increased to increase upside gains at the risk of increasing downside risk through lending. Leverage comes with liquidation price where you trade will get liquidated.
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- What is a trading exchange?
A trading exchange is the place where investments and securities are listed on an organized marketplace so that assets like cryptocurrencies, securities, commodities, foreign exchange, futures, and options contracts, etc. can be bought and sold. The core function of an exchange is to ensure fair and orderly trading (buying & selling).
- What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and an exchange. Brokers charge their clients (investors/traders) fees for every trade (sell or purchase of assets) they make for the client.
- What is margin trading?
Margin trading is the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. Margin refers to the amount of equity an investor has in their brokerage account, so “To margin” or “to buy on margin” means to use money borrowed from a broker to purchase the assets. Margin is often explained as the difference between the total value of securities (held in an investor’s account) vs the loan amount from the broker.
- What is the difference between Bid and Offer (or Bid and Ask)?
The bid price refers to the highest price a buyer will pay for a security, whereas the ask price refers to the lowest price a seller will accept for a security. The difference between the two prices is known as the spread, and the smaller the spread, the greater the liquidity of the given security. Simply stated, the bid and ask refers to the best potential price that buyers and sellers are willing to transact at in the marketplace.
- What is the leverage?
Leverage is an investment strategy of using borrowed money (borrowed capital) to increase the potential return of an investment. Simply stated, leverage refers to the use of debt (borrowed funds) to amplify returns from an investment.
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[ Trading Basics ]
1.What is a trading exchange?
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange .
2.What do brokers do?
A broker executes orders on behalf of clients and can be either a full-service broker or a discount broker that only executes trades.
Meanwhile, a dealer facilitates trades on behalf of itself. Some dealers, also called primary dealers, also facilitate trades on behalf of the U.S. Federal Reserve to help implement monetary policy.
Broker-dealers are those that perform both responsibilities, such as traditional Wall Street organizations, as well as large commercial banks among others.
3.What is margin trading?
Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount.
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
A margin account is a standard brokerage account in which an investor is allowed to use the current cash or securities in their account as collateral for a loan.
Leverage conferred by margin will tend to amplify both gains and losses. In the event of a loss, a margin call may require your broker to liquidate securities without prior consent.
4.What is the difference between Bid and Offer (or Bid and Ask)
The bid price refers to the highest price a buyer will pay for a security.
The ask price refers to the lowest price a seller will accept for a security.
The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security.
5.What is the leverage?
Leverage refers to the use of debt (borrowed funds) to amplify returns from an investment or project.
Investors use leverage to multiply their buying power in the market.
Companies use leverage to finance their assets—instead of issuing stock to raise capital, companies can use debt to invest in business operations in an attempt to increase shareholder value.
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- What is a trading exchange?
A trading exchange is a system or market in which commercial transactions involving currency, shares, etc. can be carried out within or between countries.
- What do brokers do?
Brokers buy and sell goods or assets for others.
- What is margin trading?
Margin trading is a method of trading assets using funds provided by a third party. It allows traders to access greater sums of capital to leverage their positions.
- What is the difference between Bid and Offer (or Bid and Ask)?
Bid is the price a buyer is willing to pay while Offer or Ask is the price a seller is willing to accept for an asset.
- What is the leverage?
Leverage is to use borrowed capital for an investment and expects the profits made to be greater than the interest payable.
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What is a trading exchange?
A trading exchange is a online brokerage/marketplace that organizes the sale of securities, commodities and other financial assets. Gives sellers and buyers an equal playing field to trade assets among one another fairly! -
What do brokers do?
The role of a broker is to act as an intermediary between the buyer (investor/trader) and a seller on the market. Exchanges only accept orders from individuals or firms who are members of the exchange and brokers allow for individuals or firms to invest into the market, brokers are compensated through means such as commissions or fees. -
What is margin trading?
Margin Trading is referring to the practice that borrows funds from brokers in order to trade financial assets. Essentially lending money to leverage trades. -
What is the difference between Bid and Offer (or Bid and Ask)
A bid is an ask to buy the asset an offer is price suggestion for what the owner of the asset wants to give it up for. -
What is the leverage?
Leverage is simply when a position size has increased in favourable upside gains at the risk of increasing the downside risk through lending.
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- What is a trading exchange?
A platform as Binance, an organize market to trade securities, commodities, futures, cryptos/fiat exchange, an option contract are sold and bought. - What do brokers do?
A broker acts as an intermediary between investor and exchange. Executing client orders, provide investors with research, investment plans and market intelligence. - What is margin trading?
It is the act of buying and selling or investment with borrow money. That means to go into a debt to invest. - What is the difference between Bid and Offer (or Bid and Ask)
It refers to a two way price quation that indicate the best potential price at which a security can be sold an bought at a given point time. - What is the leverage?
It refers to the use of the money to amplify returns from an investment. Investors use leverage to multiply their buying power in the market. High risk operation. The difference between bid and offer/ask is the spread.
- What is a trading exchange?
The place where investments and securities are listed on the market - What do brokers do?
Its role primarily consists of providing a point of contact for institutional clients seeking to buy or sell financial or non financial products - What is margin trading?
margin trading refers to the process whereby individual investors buy more stocks than they can afford to - What is the difference between Bid and Offer (or Bid and Ask)
A Bid is the price selected by a buyer to buy a stock, while the Offer is the price at which the seller is offering to sell the stock. - What is the leverage?
Leverage is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone
- What is a trading exchange?
An exchange is a marketplace where securities, commodities derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.
For me, it is also a mean like the public place - What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself. - What is margin trading?
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount. - What is the difference between Bid and Offer (or Bid and Ask)
The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask. The difference between bid and ask prices, or the spread, is a key indicator of the of the asset. In general, the smaller the spread, the better the liquidity. - What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.
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Because I was already years ago on this platform, Investopedia tought me each and every time something new. So much that the more I learnt, the more I knew that I would have more to learn. And the more I learnt that I knew more, I saw that I knew that I know very little thing so like near from a micronothing. Great place to learn about the dance of investing and all its steps around, tempo, and great “party” place. I copied pasted to find this resume quicker. Thanks you Emmet. 
direct repost from @Emmett from investopedia…
What is a trading exchange?
An exchange is a marketplace where securities, commodities derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.
What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
What is margin trading?
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of investment and the loan amount.
What is the difference between Bid and Offer (or Bid and Ask)
The term bid and ask (also known as bid and offer) refers to a two-way price quotation that indicates the best potential price at which a security can be sold and bought at a given point in time. The bid price represents the maximum price that a buyer is willing to pay for a share of stock or other security. The ask price represents the minimum price that a seller is willing to take for that same security. A trade or transaction occurs after the buyer and seller agree on a price for the security which is no higher than the bid and no lower than the ask. The difference between bid and ask prices, or the spread, is a key indicator of the of the asset. In general, the smaller the spread, the better the liquidity.
What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.- What is a trading exchange? A place where stocks, bonds, commodities, securities, and even cryptocurrencies are bought and sold.
- What do brokers do? They manage and or execute investments for the customers and charge fees and commissions for doing so.
- What is margin trading? In a margin account, a trader can buy more than he has in the account and can significantly increase gains or losses. This is risky as the cost may be significant to the trader with losses.
- What is the difference between Bid and Offer (or Bid and Ask)? Bid price is the highest price the buyer is willing to pay and the ask or (offer) price is the lowest price the seller is willing to take. The term bid and ask refers to a 2-way price quotation at any point in time.
- What is the leverage? Leverage results from using borrowed capital to fund investments in order to increase potential returns and expand assets.
- What is a trading exchange?
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded
- What do brokers do?
A broker is essentially an intermediary between you and the investing world.
- What is margin trading?
Gives you the ability to enter into positions larger than your account balance.
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What is the difference between Bid and Offer (or Bid and Ask)
The bid rate is the maximum rate in the market which buyers of stock are willing to pay in order to purchase any stock or the other security demanded by them, whereas, the offer rate is the minimum rate in the market at which sellers are willing to sell any stock or the other security which they are currently holding -
What is the leverage?
Leverage is nothing more than using borrowed money to invest.
- What is a trading exchange?
An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments, and other groups a platform from which to sell securities to the investing public.
2)What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.
3)What is margin trading?
Margin is the money borrowed from a brokerage firm to purchase an investment. It is the difference between the total value of securities held in an investor’s account and the loan amount from the broker. Buying on margin is the act of borrowing money to buy securities. The practice includes buying an asset where the buyer pays only a percentage of the asset’s value and borrows the rest from the bank or broker. The broker acts as a lender and the securities in the investor’s account act as collateral.
4)What is the difference between Bid and Offer(Or Bid and Ask)?
The bid price is the highest price a buyer is prepared to pay for a financial instrument, while the ask price is the lowest price a seller will accept for the instrument.
5)What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.
1. What is a trading exchange?
The place where investments and securities are listed on the market.
Centralized Exchange: Binance
Descentralized Exchange: Uniswap
2. What do brokers do?
A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed
3. What is margin trading?
Margin refers to the amount of equity an investor has in their brokerage account. “To margin” or “to buy on margin” means to use money borrowed from a broker to purchase securities.
4. What is the difference between Bid and Offer (or Bid and Ask)
The bid price is the highest price point where buyers are ready to buy. The asking price is the lowest price at which sellers are willing to sell a stock or other investment asset.
5. What is the leverage?
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital.
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What is a trading exchange?
An area where buyers and sellers are able to fairly exchange stocks, crypto and other assets -
What do brokers do?
An intermediary service which connects buyers and sellers for a fee -
What is margin trading?
A trader is able to buy stock, crypto more than he has in the account and can significantly increase gains or losses by borrowing more than his means by using dept -
What is the difference between Bid and Offer (or Bid and Ask)?
Bid price is what a buyer is willing to pay. Ask is the price a seller is willing to sell. This create a gap and helps with market discovery -
What is the leverage?
Leverage from using borrowed capital (dept) in order to increase potential returns and expand assets. When market goes against you, than this also increases the potential of liquidation of position
1. What is a trading exchange
An exchange is a marketplace where financial instruments are traded.
Exchanges give companies, governments and other groups a platform from which to sell securities.
2. What do brokers do?
A broker acts as an intermediary between an investor and an exchange.
3. What is margin trading?
Margin trading refers to the process where individual investors buy more stocks than they can afford to. For this purpose the broker would lend the money to buy shares and keep them as collateral.
4. What is the difference between Bid and Offer (or Bid and Ask)
A bid is the price selected by a buyer to buy a stock, where as the offer is the price at which the seller is offering to sell the stock.
5. What is the leverage?
Leverage is an investment strategy that uses borrowed capital to increase potential returns. Leverage is a technique that utilizes debt instead of equity to buy an asset.
What is a trading exchange?
A trading exchange is a system or market in which commercial transactions involving currency, shares, etc. can be carried out within or between countries
What do brokers do?
Brokers buy and sell goods or assets for others
What is margin trading?
Margin trading is a method of trading assets using funds provided by a third party. It allows traders to access greater sums of capital to leverage their positions
What is the difference between Bid and Offer (or Bid and Ask)
Bid is the price a buyer is willing to pay while Offer or Ask is the price a seller is willing to accept for an asset
What is the leverage?
Leverage is to use borrowed capital for an investment and expects the profits made to be greater than the interest payable
1. What is a trading exchange?
Is a regulated market place where traders exchange or trades financial instruments and other items.
2. What do brokers do?
A broker acts as an intermediary between an investor and a securities exchange.
3. What is margin trading?
Margin trading refers to the process whereby an investor buys more stocks than they can afford to using borrowed money.
Investor must first deposit minimum amount and the stocks bought on margin are keep as collateral.
4. What is the difference between Bid and Offer (or Bid and Ask)
The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security.
5. What is the leverage?
Leverage is an investment strategy of using borrowed money as a funding source.
- What is a trading exchange?
A trading exchange is an organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought. - What do brokers do?
A broker is a person who arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. - What’s is margin trading?
Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker. - What is the difference between between bid and offer?
A Bid is the price selected by a buyer to buy a stock, while the Offer is the price at whichever the seller is offering to buy the stock. - What is the leverage?
Leverage is a financial strategy of using borrowed money to increase the potential return of an investment.