Trading Overview

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What Is Trading?

Trading is one of the key features of the global financial economy. It creates liquidity across the financial markets, is one of the main sources of profit for investment banks and is done by many institutions (investment banks, hedge funds, commodity companies etc.). Traders tend to use technical and fundamental analysis to price assets and to attempt to predict the future movements. If a trader is trading in large enough quantities, their trades can actually move the market, thus giving them a comparative advantage over smaller traders.