Friday, 13 June 2014

General Introduction of Trading in Commodities

Trading can be define as  purchasing or selling of exchange commodities between two parties.Generally it’s a buying and selling of goods and services in order to make quick profit in less time or in other words trading can be a businesss. Participation involve  in trading market may  range from small investor to big investor, involves some participation such as retail investor, institutional investor such as mutal funds, banks, Insurance company etc.Trading can be done in various  exchange commodites such as stock market, equity market, bullion market .

Exchanges in share market can be done by physical location which is termed as open outcry. In this process traders bids verbally and offers simultaneously, example of such an exhange is New York stock Exchange. Another type of exchange is virtual type in which trading is done  electronically with the help of an network connection example of such exchange is Nasdaq.
Most of the traders trade by auction market in which an buyers bid for a stock and a sellers ask for a stock at specific price.Trading in share market may varies with some profit and lose.In fact stock market shows the country’s strength and economic growth. In this way financial system promotes once country’s increase prosperty.

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