How Many Types of Trading and How it Works.

Hello people, today we gonna discuss about ‘how many types of trading’. There are many types of trading. Every trading has it’s own characteristics and strategies. here we will discuss some of the most common types of trading.

1. Day Trading: Day traders buy and sell some strike price within the same trading day. Their only aim to profit from short-term price movements. Traders can’t hold their positions overnight. Trading involves rapid trades.
2. Swing Trading: Swing traders can hold their positions for many days to weeks. Swing traders aim to capture short to medium term price swings. This types of traders use technical and fundamental analysis to identify potential entry and target points.
3. Position Trading: You can take long term positions for months or even years. They analyze macroeconomic and fundamentals factors of the company. They then determine the entry and exit point.
4. Scalping: Scalping is all about sudden movement. Scalpers aim to profit very small price movements within 30 second or 1 minute time frame. They execute a large number of trade quantity.
5. Algorithmic Trading: Algorithmic trading is based upon computer algorithm to execute trading strategies automatically. It can be used for various trading styles.
6. Options Trading: Options Trading you can buy and sell options contracts. You can exit your position same day or hold till the expiry day. Options can be used for hedging or speculative purposes.
7. Futures Trading: Traders can buy and sell futures contracts, which obligate the trader to buy or sell an underlying asset at a predetermined date in future. Futures are often used for hedging.
8. Forex Trading: In Forex trading, traders can buy and sell currency pairs. Traders aim to make profit from fluctuations in exchange rates.
9. Cryptocurrency Trading: cryptocurrency trading is similar Forex trading. Here you buy and sell digital currencies like Bitcoin and Ethereum.
10. Commodity Trading: they buy and sell physical commodities like oil, gold, wheat and so on. they also can buy and sell commodity futures contracts. they may trade based on supply and demand and economic factor.

These are some common types of trading which traders often choose a style that aligns with their risk, time and trading objectives. You can also choose you trading with your risk capacity.