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What is equities trading?

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2nd Nov 2009 by JonB

The word equity implies an part ownership in something, eg a share of stock in a company. Equities trading usually refers to stock trading. Trading is an umbrella term that can be used to describe a wide range of activities.

Supply and demand are constantly fluctuating due to countless factors. Economic data, weather, news etc. This means that the prices of stocks are constantly fluctuating. Traders attempt typically take advantage of these fluctuations. Typically, the time frames that a stock trader deal with are much smaller than an investor would deal with.

There are many kinds of traders. Scalpers may hold a position for only a few seconds. Day traders may hold for minutes or hours, but usually not more than 24 hours. Swing traders hold for a period of days and weeks, but usually not months.

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26th Oct 2009 In Stocks 1 Answers | 319 Views
Subjects: equities, equities trading,

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