Trading Basics topic

  1. What is a trading exchange?
    trading exchange is a market place where commodities, securities,derivatives, crytos, fitures, options,
    contract, etc is bought and sold.

  2. What do brokers do?
    Broker is an individual or firm that connect buyer and seller to each other and they charge their clients on every trade (buy/sell of assets) they make for their clients.

  3. What is margin trading?
    Margin trading is the method of using borrowed fund from a broker to trade assets. It works on the base of equity the investor has on their brokerage account.

  4. What is the difference between Bid and Offer ?
    Bid is the price buyer is willing to pay for an asset, whereas offer (ask) is the price seller is willing to make the deal.

  5. What is the leverage?
    Leverage is a trading method to use borrowed capital to amplify the return from a trade or investment.

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1 What is a trading exchange?
trading exchange is a market place where commodities, securities,derivatives, cryptos, etc are traded, ensuring fair and orderly trading and the efficient dissemination of price information for any securities trading on that exchange.

2 What do brokers do?
Broker is an individual or firm that connect buyer and seller to each other and they charge their clients on every trade (buy/sell of assets) they make for their clients.

3 What is margin trading?
Margin trading is the method of using borrowed fund from a broker to trade assets. Essentially, margin trading amplifies trading results so that traders are able to realize larger profits on successful trades.

4 What is the difference between Bid and Offer ?
he bid price refers to the highest price a buyer will pay for an asset. The ask price refers to the lowest price a seller will accept for an asset. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given asset/security.

5 What is the leverage?

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.

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  1. A trading exchange is a marketplace where assets in form of securities, commodities, derivatives and other financial instruments are traded
  2. A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange.
  3. Margin trading is a method of trading assets using funds provided by a third party. When compared to regular trading accounts, margin accounts allow traders to access greater sums of capital, allowing them to leverage their positions.
  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 is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone. Brokerage accounts allow the use of leverage through margin trading
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  1. What is a trading exchange? a place where buyers and sellers buy/sell
  2. What do brokers do? find you someone when you want to sell or buy
  3. What is margin trading? to use borrowed funds to trade assets
  4. What is the difference between Bid and Offer (or Bid and Ask) bid is a price to buy , and offer a price to sell
  5. What is the leverage? its to use more money then what you actually own to make trades that can make you loose more or win more than you own.
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1. trading exchange?

2. what do brokers do?

3. what is margin trading?

4. difference between bid/offer (bid/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.
  • https://www.investopedia.com/terms/b/bid-and-ask.asp

5. what is the leverage?

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What is a trading exchange?

It’s an open, organized market place for any financial instrument, providing a fair efficient and orderly trading opportunities by centralizing the buying and selling of a particular type of asset.

What do brokers do?

A person or a firm that arranges transactions between a buyer and a seller for a commission.

What is margin trading?

Borrowing money in order to carry out trades. When trading on margin, investors first deposit cash or crypto that serves as collateral for the loan, and then pay ongoing interest payments on the money that borrows.

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

It’s a two way price quotation that indicates the best potential price at which an asset can be sold and bought at any given point in time. The bid price represents the maximum price that a buyer is willing to pay for the asset The ask price represents the minimum price that a seller to take for the ase asset.

What is the leverage?

The use of debt in order to undertake an investment.

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  1. An exchange is a place where you can buy and sell your currency.
  2. Brokers are the middleman between buyers and sellers
  3. margin is the collateral that a holder of a financial instrument has to deposit with a counterparty to cover some or all of the credit risk the holder poses for the counterparty
  4. Bidding is buying while offer is selling
  5. to use borrowed money to invest while hoping that the profit made is larger than the interest that needs to be payed
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  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. 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 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.

  5. What is the leverage?
    Leverage refers to the amount of debt a firm uses to finance assets.

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  1. A trading exchange is a market or exchange of securities, derivatives, cryptocurrencies, stocks, or other commodities that are desired. A person trades fiat currency to buy commodities on the exchange.

  2. A broker is a person who trades on the market for other people, charging them for their services.

  3. Margin is a method of trading by using collateral to borrow a margin of the actual commodity. Your broker funds the transaction. You will make a profit when the profit earned is much higher than the margin, or you suffer a loss.

  4. Bid is the highest price a buyer is willing to pay for an asset. Ask is the lowest price the sellers will take for the asset.

  5. Leverage is a method to borrow capital to increase the profit return from a trade or investment.

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What is a trading exchange?

An exchange, in essence, is a neutral third party that allows one to exchange properties with another. You trade an asset A for an asset B.

What do brokers do?

Bring buyers and sellers together

What is margin trading?

Margin trading is a means of trading securities that makes use of funds supplied by a third party. It enables traders to gain access to larger volumes of capital in order to exploit their positions.

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

Bid is the price a buyer is willing to pay for an asset, while Offer or Ask is the price a seller is willing to consider.

What is the leverage?

Leverage is the use of borrowed money for an investment with the expectation that the gains will be higher than the interest payable.

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  1. What is a trading exchange? Organized market where tradable securities, commodities, foreign exchange, futures, and options contracts are sold or bought.
  2. What do brokers do? An individual/firm that acts as an intermediary between an investor and a securities exchange
  3. What is margin trading? borrowing money from your brokerage company, and using that money to buy stocks (or in our case crypto!).
  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, while the Offer is the price at which the seller is offering to sell the stock.
  5. What is the leverage? using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Investors use leverage to multiply their buying power in the market.
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  1. What is a trading exchange?
  • An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded.
  1. What do brokers do?
  • A broker is an individual or firm that acts as an intermediary between an investor and a securities exchange. .Discount brokers execute trades on behalf of a client, but typically don’t provide investment advice. Full-service brokers provide execution services as well as tailored investment advice and solutions.
  1. 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.
  1. What is the difference between Bid and Offer (or Bid and Ask)
  • A Bid is the price that is chosen by a buyer when they want to purchase shares. On the other hand, the Offer price, sometimes called the Ask price, is the price at which the seller is offering to sell their assets.
  1. What is the leverage?
    Leverage is the use of debt (borrowed capital) in order to undertake an investment or project. When one refers to a company, property, or investment as “highly leveraged,” it means that item has more debt than equity. The concept of leverage is used by both investors and companies.
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A trading exchange is an exchange where brokers and and traders can buy and sell securities, such as shares of stock, bonds, cryptocurrencies and other financial instruments.

A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed.

Margin trading occurs when an investor buys an asset by making a deposit of a fraction of the price and borrowing the balance from a broker.

A bid is the price selected by a buyer to buy a security, while the offer is the price at which the seller is offering to sell it.

Leverage results from using borrowed capital as a funding source when investing in an atttempt to increase returns on an investment.

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  1. Exchange is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.

  2. 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. Margin trading, also known as buying on margin is getting a loan from a broker to invest in securities that allows investors to buy more stocks, or greater numbers of shares, than they could afford to purchase outright. If your account balance falls below a predetermined level during the trade, you will incur a margin call.

  4. Bid is a highest price that a buyer can pay for a product or a service, but offer is always the price that a seller demands for the product or service.

  5. Leverage means you’re taking on debt to boost your buying power. You do this because you believe the asset or security you’re buying will bring in more profit than the original cost of the debt.

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1. What is a trading exchange?
It is a marketplace where buyers and sellers come together to exchange instruments/value/commodities etc.
2. What do brokers do?
Brokers act as an intermediary between buyers and sellers
3. What is margin trading?
Trading on margin means borrowing money from a brokerage firm in order to carry out trades.
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, while the Offer is the price at which the seller is offering to sell the stock.
5. What is the leverage?
Leverage is an investment technique of using borrowed (mostly from a broker/exchange) to make do a trade.

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  1. What is a trading exchange?
  2. What do brokers do?
  3. What is margin trading?
  4. What is the difference between Bid and Offer (or Bid and Ask)
  5. What is the leverage?
  1. a trading exchange is essentially a club for traders who are looking to buy and sell
    2)brokers find buyers for stocks your looking to sell in a more “neesh” market similar to what a trading exchange does but wither a higher TX fee
    3)margin trading , is buying a fraction of the price (or margin of the price) and borrow the rest but you must buy and sell the stock the same day
  2. if your selling a stock you will get a bid price if you’re buying a stock you will get an ask price
  3. trading with debt rather then equity in purchasing an asset
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  1. A marketplace where you can exchange yours assets, commodities and securities

  2. Brokers link togheter buyer and sellers.

  3. Is to trade a borrowed assets from the broker. The initial money deposit on the broker account constitue the collateral for the loan of the trading asset.
    Let’s say that I want to trade one BTC, but I have no 37K to put on the table. BUT I know that this Elon tweet will pump the market up, so I margin trade 1 BTC. Tomorow 1 BTC Is traded 40K. Boom, I give back 37k++ to the broker and take a 3k-- without investing money, just guts. And knowledge. In case Elon change (again) his mind overnight, and tweet that BTC is crap, and BTC falls to 30k, then Im screwed. Thats how I see it.

  4. Bid represent the highest price a buyer is willing to pay. Ask is lowest the seller is willing to sell. The difference is called spread. The smaller the spread is the greater the liquidity.

  5. Leverage is the use of borrowed funds to multiply the buying power in the market.

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I won’t add anymore on the definitions but i have a question…
Are leverage and margin trading linked? I mean if leverage is just a term for using debt and margin trade uses debt to trade, then margin trading uses leverage, right/wrong?

Hey community, I have a question about simple trading strategy.
When using RSI going on a short trade, should I change the parameters the other way around? Like 70 - 0. Just a thought. Have a nice one.

Got the same confusion…