trying to answer all these without google ( my own words)
an entity that host trading (usually online) for either retail traders , companies or both
brokers match market trades to execute trades while also supplying helpful tools
/ 5. margin is the collateral ( or initial cost) to open a position in trading while leverage is the multiplier applied to equity/position
bid: price point in which a buyer will execute a trade
ask: price point in which a seller will execute trade
An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded.
A broker acts as an intermediary between the investor and exchange.
3.Margin trading is when the investor is using borrowed funds from a broker to trade a financial assets.
4, The bid is the maximum price a buyer is willing tp pay for a share or stock. A ask is the minimum price the seller is willing to take for that same share or stock.
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?
Brokers are sales agents who trade securities for their clients, earning a commission on each trade. They also provide services for their clients, such as trading advice and tips on opening and closing prices.
What is margin trading?
Margin trading is when you buy and sell stocks or other types of investments with borrowed money. That means you are going into debt to invest. Margin trading is built on this thing called leverage , which is the idea that you can use borrowed money to buy more stocks and potentially make more money on your investment.
What is the difference between Bid and Offer?
Bid price is always lower than the ask price of the same commodity and the difference is often called the spread. • Bid price is the price at which the market buys from you a pair of currencies whereas offer price is the price at which the market sells you a pair of currencies. The same applies in the context of a share market.
What is the leverage?
When a trader opens a position, s/he deposits an initial investment amount to be leveraged, to maximise trading exposure. In other words, leverage is the increased power to buy or sell financial instruments. Leverage is expressed as a ratio, such as 1:2 or 1:50.
Leverage can also refer to the amount of debt a firm uses to finance assets. When one refers to a company, property or investment as “highly leveraged,” it means that item has more debt than equity. … Leverage refers to taking on debt, while margin is debt or borrowed money a firm uses to invest in other financial instruments.
A trading exchange is a platform or space that allows its participants to exchange any tradeable object/asset. This term is mostly referred to both traditional and deFi markets, in which is possible to trade different assets in the search of profit.
Brokers are in charge to invest/trade assets in different markets. In traditional markets, they are individuals or firms certified to trade for certain institutions. Basically, they face the exchange markets and get profit from it. It can also be considered as brokers some trading platforms whether is for cryptocurrencies or traditional fiats because the do a mediation between the stock market and/or the blockchain network.
Margin trade is a tool that can be used to increase x(?) the size of a position by using collaterals (isolated or cross borrows) provided by a third party. The position has to be liquidated or repaid if it reaches the limit of its collateral, and there’re also different fees depending on the broker/platform used by the trader.
Bid (Buy) and Ask (Sell) are the listed order or orders that shows how much a buyer is offering to pay for a position or order (bid) and the Ask is the price offered to sell a position in the order book.
It’s used for trading margin and futures, it enables the trader to multiply x times a trade using the cross (a borrow that comes from different assets behold by the trader) or isolated (a single asset or coin). If wins, the percentage is multiplied by the requested leverage. If not, the position is liquidated or repaid when it reaches the collaterals limit.
What is a trading exchange?
A place where cryptocurrencies, stocks, bonds, and securities are bought and sold.
What do brokers do?
Brokers manage investments and acts as an intermediary between an investor and a securities exchange.
What is margin trading?
Margin trading is buying and selling stocks or other types of investments on borrowed money.
What is the difference between bid or offer?
The bid price refers to the highest price the buyer is willing to pay for a share of a security or stock and the offer is the minimum price that a seller is willing to accept for that same security.
What is the leverage?
Leverage results from using borrowed capital as a funding source to increase the potential returns of an investment.
What is a trading exchange?
An exchange is a marketplace where financial instruments are traded. Exchanges give companies, governments, and retail investors a platform to buy and sell financial assets across the globe.
What do brokers do?
A broker is an individual or company that acts as an intermediary between an investor and a securities exchange. Because securities exchanges only accept orders from individuals who are members of that exchange, individual traders and investors need the services of exchange members. Brokers provide that service and are compensated 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 an 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 an asset 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 the financial asset. The ask price represents the minimum price that a seller is willing to take for that same asset.
A trading exchange is a market place online or in person where cryptocurrencies ,stocks, bonds, securities and commodities are bought and sold.
Brokers serve as intermediaries between markets exchanges and the investing public. Brokers take order from customers and try to fill them at the best price possible. In return, they earn a fee known as a commission.
Margin trading is a tool that can be used to increase the size of a position by borrowing money from the broker in order to carry out trades. When trading on margin, investors first deposit cash that then serves as collateral for the loan, and then pay ongoing interest payments on the money they borrow.
Bid prices refer to the highest price that traders are willing to pay for a security. The Ask price, on the other hand, refers to the lowest price that the owners of that security are willing to sell it for
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.
You are missing one more question and is the last question. There are five questions, sometimes people forget a question, am just helping you.
What is the Leverage?
What is trading exchange?
Trading exchange is a marketplace for traders to trade.
What do brokers do?
Brokers is an individual/firm who are a member of an exchange that connects buyers & sellers to make a trade successful.
What are margin trading?
Margin trading is when you borrow funds to buy an investment.
What is the difference between bid & offer?
Bid is the price that buyers offering in the market & offer is the price that the sellers are offering
5.What is leverage?
Leverage is when you open a position and the size increased more than your fund size which resulted increased upside gain & also downside loses.
What is a trading exchange?
A trading exchange is an organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are bought and sold.
What do brokers do?
A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. A broker can also refer to the role of a firm when it acts as an agent for a customer and charges the customer a commission for its services.
Some of the responsibilities include managing client portfolios, deciding about when to buy or trade financial securities, working closely with clients to understand their financial goals and risks, and consulting clients on the buying and selling price of different stocks.
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.
The collateralized loan comes with a periodic interest rate that must be paid. The investor is using borrowed money, or leverage, and therefore both the losses and gains will be magnified as a result. Margin investing can be advantageous in cases where the investor anticipates earning a higher rate of return on the investment than what he is paying in interest on the loan.
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 ask price represents the minimum price that a seller is willing to take for that same security while the bid price is the highest price a buyer is prepared to pay for a financial instrument.
What is the leverage?
Leverage is a trading mechanism investors can use to increase their exposure to the market by allowing them to pay less than the full amount of the investment. The trader uses credit provided by a broker so that he or she only has to pay a percentage of the value of the transaction.
Noting my brief answers to the reading assignment:
What is a trading exchange?
A trading exchange is the place for trading any type of goods, assets, currencies or securities. It is a place where sellers and buyers, as well as the asset providers, intermediaries and sometimes regulators meet.
What do brokers do?
Brokers carry out services in the name of buyers or sellers, they are intermediaries where a person cannot participate in the trading directly (individually) or it chooses to use broker, to get additional services.
What is margin trading?
Margin trading is using borrowed money in order to participate in the trading process.
What is the difference between Bid and Offer (or Bid and Ask)
The term “bid” refers to the highest price a buyer will pay to buy a specified quantity of an asset at any given time. The term “ask” refers to the lowest price at which a seller will sell the asset. The difference between the bid price and the ask price is called the "spread .
What is the leverage?
Leverage is the method of borrowing money to finance a project and amplify its future returns. Leverage trade is generally referred to as the ratio between the money invested and the amount of money allowed to trade after taking the debt. A major difference between margin and leverage trading lies in the fact that while both entail investing, margin trading entails using the collateral present in the margin account as a means of borrowing funds from a broker that must be paid back with interest.
In these circumstances, the money borrowed acts as collateral, allowing the person to carry out significant trades. Both concepts are majorly interrelated, however, it is essential to note that comparing margin VS leverage, a margin account is not the only way of generating leverage as it can be done by employing strategies that do not have any relation with margin accounts.
What is trading exchange?
A marketplace, where we can trade (buy or sell) cryptocurrencies, forex currencies, ressources, bonds, assets, shares etc.
What do Brokers do?
Managing Clients Portfolio and making money by selling and buying in the exchanges.
What is margin trading?
Trading with money from yourself and from the Broker. Aim is: Increasing the Buying Power.
What is leverage?
Using borrowed money to make more money on an investment.
A trading exchange is where you go to buy/sell securities, commodities derivatives.
Basically a middle man that connects you to a trade you’re trying to do and takes commission. they can also supply you with a loan when margin trading like using leverage when trading.
margin trading is basically trading with something borrowed and having something deposited or used as equity back up the worth of what you’re borrowing. The margin is how much you’re allowed to borrow against your assets.
Bid is the highest price to someone would buy at, ask is the lowest price someone would sell at. there is also a thing called spread which is the value of the amount in between both the bid and asking price which the market maker profits from
Leverage is debt divided by total assets and works with margin. it helps you amplify your returns but can also work the other way and get you liquidated very easily depending on your leverage ratio! leverage is the borrowed currency.
What is a trading exchange?
A marketplace where people meet to exchange cryptocurrencies or other assets.
What do brokers do?
Brokers connect sellers and buyers directly. If there are no buyers they also act as middleman.
What is margin trading?
In margin trading you leverage your position with borrowed money.
What is the difference between Bid and Offer (or Bid and Ask)
A Bid is the maxmimum price a buyer is willing to pay for the asset and ask is the minimun price the seller is willing take for the same asset.
What is the leverage?
Leverage is an investment strategy of using borrowed capital.
1.What is a trading exchange?
It’s a place where people exchange assets in certain classes/categories for a higher or lower price.
2.What do brokers do?
A broker is an agent that can act and assist on behalf of the individual or company and provide a service in which will offer more services or advise, acting like a middle man the connects buyer and exchange services.
3.What is margin trading?
Basically it operates as borrowed money in which somebody uses money they don’t have in order to trade, basically leveraging money to make more money than you originally could if you were to buy and sell normally.
4.What is the difference between Bid and Offer (or Bid and Ask)
It is the highest price in which an offer is made to buy an asset, while ask is the lowest price the offerer will make to sell an asset.
5.What is the leverage?
It acts as a multiplier to return greater yield from borrowed funds.