Trading Basics topic

[HemalT]

What is a trading exchange?

An exchange, bourse, trading exchange or trading venue 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 buys and sells things on behalf of other people. A broker may also arrange transactions between a purchaser and vendor. After the parties have completed the deal, one of them pays the broker a commission

When brokers also act as purchasers or sellers, they become the principal party to the deal.

What is margin trading?

Margin trading is a practice that allows trading assets by using additional funds provided by a third party. Margin accounts give traders access to more capital. This means that traders can leverage their positions. In essence, margin trading strengthens trading positions and traders can realize larger gains on successful trades.

What is the difference between Bid and Offer (or Bid and Ask)

The bid price is simply called a Bid which is the highest price at which a buyer is willing to pay for a security. Offer or Ask Price is simply called Ask which is the lowest price at which a seller is willing to get for selling a security. These terms are used in Auction. The Difference amount between Bid and Ask is known as Bid-Ask Spread or simply spread. When a Buyer and Seller agree on some particular price only then transactions or trade happen start between them.

What is the leverage?

Leveraged trading consists of trading with borrowed capital from your broker in order to enhance your buying power. When a broker gives you a leverage factor (multiplier) of 1:10, 1:20 or any other, they’re referring to the amount of times that you’re buying power is amplified to.

[Jmac45]

1. What is a trading exchange?
   An exchange is a marketplace where you can buy and sell (trade) financial instruments such as crypto currencies.

2. What do brokers do?
   Brokers act as a middle man by finding buyers and sellers on an exchange. They take a commission or fee on every trade as payment

3. What is margin trading?
   Margin trading refers to borrowing from a broker in order to trade, the investor used funds they do have available as collateral.

4. What is the difference between Bid and Offer (or Bid and Ask)

This is a two way price quotation. Bid is the maximum price a buyer is willing to buy an asset for, an offer or ask is the minimum price a seller is willing to sell for. The difference between the two prices is known as the spread.

5. What is the leverage?

Leverage trading is essentially borrowing capital from a broker to make an trade. This increases the investors buying power, both losses and gains are magnified.

[Moseswong]

1. What is a trading exchange?
   It is a platform where assests are listed in an orderly and fair maaner for the buyers and sellers to transact.

2. What do brokers do?
   They act as intermediaries between exchanges and investors.
   Investors have to pay them some fees to engage their services.

3. What is margin trading?
   Margin trading is the amount that an investor can borrow from the brokers to trade based on assets in their accounts.

4. What is the difference between Bid and Offer (or Bid and Ask)
   The bid is the highest possible price a buyer is willing to pay to get the asset, wheras the offer is the lowest possible a seller is willing to sell for his asset. The difference between Bid and Offer is the spread.

5. What is the leverage?
   The amount that an investor can loan from the broker to finance his investment.

[Jasko_88]

1. What is a trading exchange?
   A Exchange is a marketplace where financial instruments are traded like Gold, Stolks, Cryptocurrencies. The core function of a exchange is to ensure fair and orderly trading.
2. What do brokers do?
   A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.
3. What is margin trading?
   In finance, the margin is the collateral that an investor has to deposit with their broker or an exchange to cover the credit risk the holder poses for the broker or the exchange. An investor can create credit risk if they borrow cash from the broker to buy financial instruments, borrow financial instruments to sell them short, or enter into a derivative contract.
4. What is the difference between Bi and Offer (or Bid and Ask)?
   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.
5. What is the leverage?
   Leverage is a investment tool of using borrowed money to invrease the potential return. Leverage can also refer to the amount of a firm uses to finance assets.

[supertramp007]

1. What is a trading exchange? a marketplace where securities, commodities, derivatives and other financial instruments are traded.
2. What do brokers do? they help clients buy or sell a security, like a stock
3. What is margin trading? when you buy and sell stocks or other types of investments with borrowed money
4. What is the difference between Bid and Offer (or Bid and Ask) Bidn is the highest price at which a buyer is willing to pay for a security. Offer or Ask Price is simply called Ask which is the lowest price at which a seller is willing to get for selling a security
5. What is the leverage? using borrowed money to invest

[learn87]

An exchange (like NYSE and Crypto.com) is a place where you can trade commodities, securities, derivatives and other financial instruments.

A broker is a person who makes exchanges on your behalf for commission when the deal is executed.

Margin trading is when you borrow funds from a broker in which you have to put up some type of collateral for the loan from the banker.

Leverage is borrowing funds to make significant returns on an investment.

[th3lastairbndr]

1. What is a trading exchange?

An exchange is a marketplace where buyers and sellers come together to trade (buy and sell) assets (stocks, bonds, currency, commodities, gold, silver, REITS, derivatives).

2. What do brokers do?

A broker is the intermediary that connects the buyer and the seller.

3. What is margin trading?

Is using borrowed funds from the broker to trade a financial instrument, which uses cash and other types of asset to hold as collateral against the borrowed funds. Margin is used to increase purchasing power to maximize gain on a position.

4. What is the difference between Bid and Offer (or Bid and Ask)?

The bid is the highest price a buyer is will to spend to purchase a security and the ask is the lowest amount the seller is willing to accept to sell the security. When there is an agreement in price a trade happens. The spread is the difference between the price you can buy at and the price that you can sell at.

5. What is the leverage?

Leverage is the use of borrowed capital to amplify returns from an investment.

[speedster1050]

What is a trading exchange?
An exchange is a marketplace where securities 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 independent person or a company that organises and executes financial transactions on behalf of another party. They can do this across a number of different asset classes, including stocks, forex, real estate and insurance. A broker will normally charge a commission for the order to be executed.

What is margin trading?
In finance, the margin is the collateral that an investor has to deposit with their broker or an exchange to cover the credit risk the holder poses for the broker or the exchange. An investor can create credit risk if they borrow cash from the broker to buy financial instruments, borrow financial instruments to sell them short, or enter into a derivative contract.

What is the difference between bid and offer?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 leverage?
Leverage is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone, traders often use leverage to profit from relatively small price changes in currency pairs. Leverage, however, can amplify both profits as well as losses.

[Ryan_Jackson]

1. A trading exchange is a physical or electronic market place where securities, commodities, derivatives and other financial instruments are traded.

2. Brokers connect the buyers and sellers of assets creating market liquidity. Executing buy & sell orders submitted by investors and advising exsisting clients with recommendations for their portfolio.

3. Margin trading is borrowing funds against your assets from a third party with interest to make a bigger asset investment.

4. The difference between Bid and Offer is a Bid is the highest price a buyer agrees to pay the seller and an Offer is the price the seller demands.

5. Leverage is the use off borrowed funds to make an invest or project.

[porte01]

1. What is a trading exchange?

An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded.

2. What do brokers do?

A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.

3. What is margin trading?

In the stock market, margin trading refers to the process whereby individual investors buy more stocks than they can afford to.

4. 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 when a buyer in the market is willing to pay the best offer available—or is willing to sell at the highest bid.

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.

[FunsyH]

1. An exchange is a marketplace where 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. A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.

3. the margin is the collateral that an investor has to deposit with their broker or an exchange to cover the credit risk the holder poses for the broker or the exchange.

4. 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. 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 to increase the potential return of an investment.

[mmcdevi1]

1. What is a trading exchange?

• A meeting point for exchanging something like cryptocurrency and or stocks etc.

2. What do brokers do?

• Connects Buyers & Sellers

3. What is margin trading?

• Margin trading is using borrowed funds from a broker to trade financial assets, which acts as collateral for the loan from the broker

4. What is the difference between Bid and Offer (or Bid and Ask)

• Bid refers to highest price that a buyer is willing to pay for a security and or crypto
• Seller refers to the lowest price that a seller is willing to accept for a security and or crypto

5. What is the leverage?

• Leverage is an investment strategy of an individual using borrowed money to increase the potential return of an investment (very risky). It refers to the debt of borrowed funds to amplify returns from an investment

[kdz]

1. What is a trading exchange? Is a marketplace (a place of economic activity) where securities, commodities derivatives and other financial instruments are traded.
2. What do brokers do? Brokers (intermediary) assist in the buying and selling of marketplace items on an exchange. If brokers are used, they are compensated through commissions/fees.
3. What is margin trading? Is where you are buying stocks with lent money. You have to repay the loan with interest at a later date (The stock is the collateral). The margin is the amount you borrowed. Margin trading amplifies your gains and losses.
4. What is the difference between Bid and Offer (or Bid and Ask). A bid comes from a buyer. An “Ask” is from a seller. 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.
5. What is the leverage? Leverage is when you use someone else’s money to place a trade (see Margin trading).

[William_Kuang]

1. What is a trading exchange?
   It is a market that people use to trade derivatives.

2. What do brokers do?
   They are the middle man between securities and traders.

3. What is margin trading?
   It is borrowing funds to make bigger trades and this is achieved by using some of your existing funds as collateral.

4. What is the difference between Bid and Offer (or Bid and Ask)
   Bid is the price that buyers buy something while an offer is the price where traders are willing to sell something on the trading exchange.

5. What is the leverage?
   Leverage means to borrow funds to trade.

[CameronW]

1. What is a trading exchange? An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded.
2. What do brokers do? A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.
3. 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.
4. 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.
5. What is the difference between Bid and Offer? The term bid and ask 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
6. 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.

[Aida1]

1. What is a trading exchange?
   is a form of barter network where several businesses usually formed by one central master business.

2. What do brokers do?
   they act as intermediary between the parties(buyer and seller)involved. executes sales and complete administrative duties such as follow-up with customers.

3. what is margin trading?
   is the process where by individual investors buy more stocks than they can afford to.

4.What is the difference between Bid and Offer?
Bid is a price selected by a buyer to buy a stock and Offer is the price at which the seller is offering to sell the stock.

5. What is the leverage?
   is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance a lone.

[spicydumpling]

1. What is a trading exchange?
   • A trading excahnge connects a seller and a buyer.
2. What do brokers do?
   • Brokers find buyers/sellers on your behalf.
3. What is margin trading?
   • Margin trading is trading with borrowed funds.
4. What is the difference between Bid and Offer (or Bid and Ask)
   • Bid signifies the maximum price for selling a position and the Ask price is representative of the minimum price for buying a position.
5. What is the leverage?
   • In leverage trading the client borrows funds to enter a trade. This increases exposure to the market and possible profit but can also result in loss of investement and personal capital.

[Y2z3H]

1. What is a trading exchange?

A trading exchange is a regulated market for the sale and purchase of tradable securities, commodities, foreign exchange, futures, and options contracts.

2. What do brokers do?

A broker is a person or an organisation that arranges and executes financial transactions on behalf of another person or firm. This is possible in a variety of asset groups, including stocks, currency, real estate, and insurance.

3. What is margin trading?

Margin trading is the process of trading a financial asset with borrowed funds from a broker, with the asset serving as security for the broker’s loan.

4. What is the difference between Bid and Offer?

A buyer’s Bid is the price at which he or she wishes to purchase a stock, whereas the seller’s Offer is the price at which the seller wishes to sell the stock.

5. What is the leverage?

Leverage is an investing technique that involves utilizing borrowed money—specifically, different financial instruments or borrowed capital—to boost an investment’s potential return.

[DocOzone]

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 is a person who buys and sells things on behalf of other people. Making a profit based on a percentage fee on the trade.

3. What is margin trading?
Margin trading is basically trading with borrowed funds. Margin trading is when you borrow money in order to buy more of a financial product than you could have without the loan.

4. What is the difference between Bid and Offer (or Bid and Ask)
The Bid is the price the buyer is willing to pay. The Ask is the lowest price the seller will accept.

5. What is the leverage?
The leverage is the multiple of the value of the trade relative to the funds placed in the account by the buyer. The rest being borrowed.

[Asit]

1. What is a trading exchange?

A trading 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 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 trading refers to the practice of using borrowed funds from a broker to trade a financial asset, Margin is the difference between the total value of the investment and the loan amount which forms the collateral for the loan from the broker.

4. What is the difference between Bid and Offer (or Bid and Ask)?

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 when a buyer in the market is willing to pay the best offer available—or is willing to sell at the highest bid.

5. What is leverage?

Leverage is an investment strategy of using borrowed money 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.