Trading Basics topic

Technical Analysis 101 course
#83

A trading exchange is a market where you buy and sell securities, commodities, derivatives etc.

A broker arranges transactions between a buyer and a seller.

Margin trading is trading with money/asset of a third party in order to leverage the own position.

Bid and ask indicates the best potential price for which a security can be sold and bought at a certain time. The bid price is the maximum price a buyer is willing to pay and the ask price is the minimum price a seller is willing to sell for. The difference between bid and ask is a great indicator of the liquidity of the market. The smaller this difference is, the higher the liquidity.

Leverage means purchasing an asset with debt in the hope of gaining a return which is higher than the borrowed amount.

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#84

  1. when you excanging crypto to another currency

  2. person between seller and buyer

  3. is an trading method using founds from third party.

  4. bid is pryce that buyer would like to pay, ask is a price that seller asking

  5. leverage is an investment strategy by using borrowed money.

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#85

  1. A trading exchange is a market place where commodities and financial instruments are traded.

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

  3. Margin trading is when a trader buys more stock than they can afford using a margin account.

  4. It is the difference between what people are willing to pay and price being sold for something.

  5. Leverage is a investment strategy of using borrowed money to increase potential returns.

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#86
  1. What is a trading exchange?
  • A platform that brokers the buy and sell side of a market by quoting available sell and buy side orders, confirms matched trades and executes them on behalf of the exchange participants.
  1. What do brokers do?
  • Collect, match and confirm execution of buy and sell side orders.
  1. What is margin trading?
  • Per Investopedia - 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.
  1. What is the difference between Bid and Offer (or Bid and Ask)
  • Bid is the buying price and Offer is the selling price. The difference between to the two is the bid-offer spread and this is the profit taken by the broker or exchange in the market.
  1. 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, as leverage).
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#87

  1. What is a trading exchange?
    A trading exchange is a place where buyers and sellers meet to buy and sell assets in the marketplace. These assets can range from stocks, bonds, commodities, currencies (Forex), derivatives (options, futures, forwards, swaps) and Cryptocurrencies.

  2. What do brokers do?
    Brokers act as the middlemen between buyers and sellers in a marketplace and they procure the trade for a commission.

  3. What is margin trading?
    Margin trading is buying and selling stocks or other investments with borrowed money, usually borrowed from the exchange.

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

  • Bid price is the highest price a buyer is willing to pay for a product.
  • Ask price is the lowest price a seller will accept for his product.
    Ask price is always higher than bid price. The difference between the bid price and the ask price is called the spread or the “bid-ask spread”.
  1. What is the leverage?
    Leverage is an investment strategy using borrowed money to invest. It is a form of financing. It increases the potential return on your investment but it can also produce exponential losses.
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#88
  1. What is a trading exchange?

A place where assets are exchanged - Stocks, Bonds, Commodities, etc. E.I NYSE, CHICAGO Commodities Exchange.

  1. What do brokers do?

Help facilitates trades and connects buyers and sellers.

  1. What is margin trading?

The ability to trade borrowed money, assets, or derivates contracts.

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

Bid is usually what the investors offer to pay.
Ask - Market Makers set the price of a security or seller is willing to sell the stock.

  1. What is the leverage?
    Using Debt to purchase Securties.
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#89

1. What is a trading exchange?
“An exchange is a marketplace where securities, commodities, 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.” - Investopedia

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.” - Investopedia

3. What is margin trading?
Margin trading is when you buy and sell stocks or other types of investments with borrowed money. - (https://www.daveramsey.com/blog/what-is-margin-trading)

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

The offer price is always higher than the bid price. An offer is someone trying to sell at a higher value than what the investment is currently worth while a bid is the highest value that bitcoin or any investment is currently at that you know people are 100% willing to pay for.

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." - (https://www.investopedia.com/terms/l/leverage.asp)

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#90

  1. A trading exchange, also know as a Bourse or a trading venue, is a place where tradable securities, commodities, foreign exchange, futures and options contracts as bought and sold.

  2. Brokers are people or firms that arrange transactions between buyers and sellers for a fee or commission.

  3. Margin Trading is where a solo investor buys more stock than they can actually afford. You need to set up a margin account with a broker. To do this you need to pay a certain amount of money upfront to the broker in cash, this is known as the minimum margin. Once this has been set up and you start trading at the end of each session you need to square off your position.

  4. The difference between Bid and Offer is that a bid is the maximum amount of money a buyer is willing to spend to gain a security whilst an offer is the amount a seller is willing to sell their security that.

  5. Leverage where a buyer borrows funds to help to finance the purchase assets.

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#91
  1. What is a trading exchange?

A trading exchange is a market place where tradable financial assets such as securities, commodities, foreign exchange, etc are sold and bought.

  1. What do brokers do?

A broker is an intermediary between an investor and a trading exchange. They are the ones who execute the trades with the money they received from their investors.

  1. What is margin trading?

Margin trading allows a trader to engage in a much larger position by increasing its buying power as a consequence of depositing collateral and obtaining a loan from the exchange.

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

A bid price represents the maximum price a someone is willing to pay for any tradable asset and the ask price represents the minimum price that a seller is willing to pay for any tradable asset. The difference between the bid and offer is called the spread and is a key indicator of the liquidity of that asset in the exchange.

  1. What is the leverage?

Leverage allows the trader to engage in a much larger position by using borrowed capital from the exchange in order to multiply the trader’s equity.

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#92
  1. What is a trading exchange?

Where buyers and sellers meet (the Market) to sell their wears, price discvovery and profit and services and happy customers are vendors are made

  1. What do brokers do?

­­­­A Brokers Facilitates the ” physical or virtual facility or in our case the Exchange ’ where the trading takes place. They organize plan market and manage the exchange facility or trading platform to ensure the place is safe for the buyers and sellers and the make a cut or gather fee for the forum. It’s their sandbox so play nice!

  1. What is margin trading?

Making a trade using borrowed funds, as collateral, effectively going into debt to invest

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

At a particular point in time on an Open market, the Ask is what the buyer is willing to pay and the Bid is what the Seller is willing part with his security or stock. The difference is called the spread, which determines the liquidity – more spread the lower the liquidity. The ownership take place when an agreeable price between parties is “discovered”.

  1. What is the leverage?

Leverage is used the traders smaller investment by providing only a part of the total capital to open a particular – essentially magnifying their capital so the potential gains based on the total value of the position, make your available capital go further and take advantage of smaller price moves

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#93
  1. What is a trading exchange?

A trading exchange is a platform where investments and securities are listed in a centralized place so that assets like stocks, securities, commodities, foreign exchange, futures, and options contracts, etc. can be bought and sold. The core function is to ensure fair and balanced trading of these financial instruments. Most recently, cryptocurrencies, have shown up in the space.

  1. What do brokers do?

A broker is an SEC certified professional, firm, or private individual that acts as an intermediary between an investor and an exchange. Brokers charge a percentage of the trade or a percentage of the fees on each buy/sell order they work on for the said client.

  1. What is margin trading?

Margin trading is the practice of using borrowed funds from a brokerage to trade a financial instrument. It used as a collateral loan from the brokerage. Margin refers to the amount of equity the investors have in their brokerage account.

“To margin” or “to buy on margin” means to use the money borrowed from a brokerage to purchase stocks, options, etc…

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 brokerage.

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

The bid price refers to the highest price a buyer is willing to pay for a security.

The ask price refers to the lowest price a seller will accept for a security.

The difference between the two prices is known as a spread
< the spread, the greater the liquidity of the security.

Basically, it gives the best potential prices that buyers and sellers are willing to purchase within the exchange. #skininthegame

  1. What is the leverage?

Leverage is an investment strategy of using borrowed money (borrowed capital) to increase the potential return of an investment. Basically, the investor uses borrowed money (debt) to increase ROI.

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#94

1. What is a trading exchange?

A trading exchange is a specific place where a customer and brokerage deal with a zero-one sum selling of an asset (in this case cryptocurrency) where timing is of the essence.

2. What do brokers do?
Brokers handle the transaction between one user/trader and in some cases hold collateral in a market exchange.

3. What is margin trading?
It is establishing a committing % amount of money (risk) of an overall trade. This in turn gives you the opportunity to leverage with a broker/exchange with where you are trading.

4. What is the difference between Bid and Offer (or Bid and Ask)
A bid is a “proposal” or offer that a buyer request to an owner of an asset (or coin) in hopes of buying it.It is the maximum amount they are willing to purchase that asset/coin for.
An Ask or Offer, is what a seller’s maximum amount that they are willing to except to sell to an interested buyer

5. What is the leverage?
Leverage is an option a broker/exchange is willing to give to a trader who’s willing to commit to a minimum established percentage, of a normal trade. “Double downing in poker”

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#95
  1. A trading exchange is a place where you can trade, sell and buy, different products, that are available in the market. Different trading exchange might have different products.
  2. Brokers handle and facilitates all the trades that users do. They ensure that trading platform is safe place to use for users.
  3. Margin trading is using loan to get bigger position that trader has ability with using just own assets.
  4. Bid price is the maximum price that someone is willing to pay and Ask price the minimum price that someone is willing to sell.
  5. Leverage is ability to get bigger gains (or loses) with smaller amount of money. For example buying in regular way if stock cost is 1$ and it increases to 2$ you made 1$ profit. If using for example 10x leverage in same situation you made 10$ gains with Investing just 1$. Although if it decreases to 0,5$ in the first example you lost only 0,5$ but using 10x leverage you lost 5$ with just Investing 1$.
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#96
  1. What is a trading exchange?

A trading is exchange is a marketplace where commodities, securities and derivatives are traded. The goal of the exchange is to ensure fair and orderly trading and provide consistent price information.

  1. What do brokers do?

a broker is basically a middleman between the investor and the security exchange. there are needed because exchanges only accept orders from members of the exchange.

  1. What is margin trading?

Borrowing funds from a broker to gain more buying power. The purchased stock serves as collateral for the loan.

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

Bid is the highest price the buyer will pay for and assets.
Ask is the lowest price the seller will accept.
The spread is the difference and the smaller the spread the more liquidity (easier to make a deal)

  1. What is the leverage?
    Leverage is using borrowed capital to fund a company, grow asset base or generate larger returns on risk based assets. It can also refer to the debt a frim uses to finance assets.
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#97
  1. What is a trading exchange?

A trading exchange is an organised market where trade able securities, commodities, foreign exchange, futures and option contracts are traded, ie bought and sold.

  1. What do brokers do?

Brokers make trades on your behalf. The act as a middleman between investors and exchanges and buy and sell products or investments for third parties

  1. What is margin trading?

Margin trading when you buy and sell stocks or other types of investments with borrowed money. That means you are going into debt to invest.

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

Bid and ask prices are market terms representing supply and demand for a stock. The bid represents the highest price someone is willing to pay for a share. The ask is the lowest price someone is willing to sell a share. The difference between bid and ask is called the spread.

  1. What is the leverage?

Leverage is an investment model in which the trader is required to put up only a fraction of the total position value. The initial deposit is leveraged so the trader get much bigger exposure. The size of this small cash stake, known as a margin payment, varies with the types of assets and markets in which you want to trade.

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#98

  1. What is a trading exchange?
    An exchange is a marketplace for securities, commodities derivatives and other financial instruments.

  2. What do brokers do?
    The intermediaries between buyers and sellers

  3. What is margin trading?
    A margin trade is when you use borrowed funds in your transactions in order to gain bigger profits

  4. What is the difference between Bid and Offer (or Bid and Ask)
    Bid’s are the buy orders and Offer’s are the sell orders

  5. What is the leverage?
    Leverage is an investment strategy that uses borrowed money, specifically, with the goal to increase the potential return of an investment.

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#99

1. What is a trading exchange?
An exchange is a marketplace where financial instruments – such as commodities, stocks, or derivatives – 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 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 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.

4. What is the difference between Bid and Offer (or Bid and Ask)
The bid price represents the highest price that a buyer is willing to pay for an asset, while the ask price represents the lowest price that a seller is willing to accept. An individual looking to sell will receive the bid price while one looking to buy will pay the ask price.

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.

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#100

1: What is a trading exchange?
On a trading exchange buyers and sellers are brought together. Buying and selling orders are managed by the exchange, so that trading is very comfortable. Without an exchange you would have to find a corresponding buyer / seller on your own.

2: What do brokers do?
A broker is a company or a person who brings buyers and sellers directly together without an exchange involved.

3: What is margin trading?
In margin trading you deposit money (margin) to trade with a leverage.

4: What is the difference between Bid and Offer (or Bid and Ask)
Bid = Maximum price a buyer is willing to buy
Ask = Minimum price a seller is willing to sell

The price for a trade lays between Bid and Ask.

5: What is the leverage?
In leverage trading you trade on credit by depositing a small amount of cash and then borrowing a more substantial amount of cash.

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#101
  1. What is a trading exchange?

An exchange is a platform where buyers and sellers come together to trade assets. The exchange manages the price dynamics of the market in order to facilitate the activities of the traders.

  1. What do brokers do?

A broker is an agent that places orders for an individual. Deals can either be between individuals the broker brings together, or more commonly, the broker is a member of an exchange that isn’t open to the public. Thus, individuals must go through a broker to invest in certain markets.
3. What is margin trading?

Margin trading refers to when a trader takes loaned funds, known as margin, and uses it to trade.

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

A bid is the highest price a buyer will accept for a trade. The offer or ask price is the lowest price that a seller will accept.

  1. What is the leverage?

Leverage is the measure of the amount that margin trading is being used. In other words, compared to the deposited money that the trader puts down, the leverage extends that deposit further in the market by increasing the size of the trade. In simpler words, leverage is trading with borrowed funds.

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#102

Trading Basics:

  1. Trading Exchange is an open, organised marketplace where commodities, stocks, securities, derivatives and other financial instruments are traded.

  2. A broker is an individual or firm that handle customer orders to buy and sell securities or other financial instruments. He acts as a middleman.

  3. Margin Trading is a facility under which you buy stocks that you cannot afford. You are allow to buy stocks by paying a marginal amount of the actual value. Your broker funds the marginal value of the transaction.

  4. The difference between Bid and Offer (or Bid and Ask) is.
    Bid price is the highest price a buyer is prepared to pay for a financial instrument.
    Ask price is the lowest price a seller will accept for the financial instrument.
    The difference between the two prices is what is often referred to as bid spread.

  5. Leverage is using borrowed money to invest in an assets, for example, in order to increase on investment.

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