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Financial Trading

Everything you wanted to Know about Financial Trading!

Financial trading is the same as other forms of trading. It involves buying and selling assets for making a profit. If you want to know what is it, what is traded in financial trading, who can trade, how can you earn crypto and other queries, this guide will walk you through all your frequently asked queries.

financial trading

What Is Financial Trading?


Financial trading is the act of purchasing and selling financial assets. It can be done in 2 ways:

  • Exchange
  • Over-the-Counter (OTC)

An exchange is a marketplace, which is highly organized and specialized to offer traders specific types of tradable instruments. An example will make it easier for you to understand. NYSE or New York Stock Exchange is a leading American stock exchange. It enables you to buy stocks of various companies in the United States.

Now, suppose you are trading stocks over-the-counter (OTC). When you buy stocks on OTC platforms, you essentially do it with another party. One such leading OTC trading broker is IG and you can buy a CFD contract through that platform.


What are Traded in Financial Trading?


There are various financial instruments that can be traded. Some of them are:

  • Shares
  • Forex
  • Bonds
  • Derivatives including futures, options, and CFDs

No matter what you trade, the main goal of all financial trade is to make a profit. So, all the traders want to buy stocks or other financial instruments at a low price and sell at a higher price. You’ll make a loss if you buy at a certain price and the market-determined price falls below that and you have to sell it.

However, in many derivative trading, you can first short or sell a contract of a financial asset with the hope that the price of the derivative (say, future contract) will fall. If the price of the contract falls and you buy it at a price lower than the short price within the contract period, you’ll make a profit in that case.


Who can Trade Financial Instruments?


Any trader can trade financial instruments, say stocks, bonds, financial derivatives, and others. Now, the question comes, who is a trader? A trader is a person who purchases or sells financial instruments with the hope that he/she will make a profit out of the trade.

While some traders stick to trading only a particular asset class, say stocks, many others create a diverse portfolio by including multiple assets such as gold, fiat currencies (US Dollar, Euros, etc.), cryptocurrencies (Bitcoin, Ethereum, etc.), and others.  

There are some traders who carry out lots of research on the fundamental aspects of a company or the market before trading stocks. Many others put faith in reading charts and patterns so that they can trade on the basis of support and resistance.

One factor that is common in all of these financial trades is that it comes with risk. The intensity of risk may vary. If the risk is high, the profit/loss potential is also very high. There are some traders who average out the risk factor by investing regularly without considering whether the market is increasing or decreasing.

The method is called Dollar Cost Averaging. You can invest a small amount of your money on a daily, weekly, or monthly basis. If you continue this investment practice for a long period of time (generally, above 1-year), your risk will be brought down significantly and you’ll receive a decent return on your investment. So, it is very important to know your risk-bearing potential and choose a strategy of trading as per that aspect.

Which Financial Markets can you Trade?


You can trade in any market of your choice. It can be stocks of publicly traded companies, indices, forex, cryptocurrencies, and many more. You can also trade in financial derivatives including futures, options, and others. If you choose an OTC platform such as IG, you can get access to more than 16,000 markets to trade. It includes over 12,000 stocks, 30 indices, and 90 currency pairs.


Financial Trading vs. Financial Investing


  • Exposure
  • Trading

You can make a small deposit and gain exposure to the full value of your position.

  • Investing

You can put the investment’s full value.

  • Speculation
  • Trading

You can make speculation on a short-to-medium term basis.

  • Investing

You can make speculation on a short, medium, and long-term basis.

  • Trading Position
  • Trading

A trader should take a position when the value of the financial asset value either rises or falls. Both the short and long facilities are available so that you can make a profit when the price rises or falls.

  • Investing

A trader should take a position when the value of the financial asset rises.


  • Medium
  • Trading

You can either trade through exchanges or over the counter such as CFDs.

  • Investing

You can make investments through ETFs, options, futures, and stocks through exchanges. In the case of bullion, you’ll need a specialist.

You can carry out financial trading and investing by taking the help of proper analysis of the stock markets. There are two major types of analysis and they are fundamental analysis and technical analysis. Real estate can also make you lots of money. However, you have to hold the money for a longer period of time. You can get more ideas about financial investing from a wealth management company or financial advisors.


How To Get Started With Financial Trading?


  • Trade through Exchange

The steps involved in starting your financial trade through an exchange are given below:

Step #1: Choose an instrument to trade, say stocks, forex, or cryptos.

Step #2: Open an account in a reliable exchange. You can also open a CFD account too.

Step #3: Verify account or identity details.

Step #4: Monitor a chosen stock or fiat currency or cryptocurrency through a trading terminal.

Step #5: Add funds to your account through bank transfer or PayPal, or debit/credit card.

Step #6: Practice financial trading with the help of a demo account.

  • Trade through IG

The steps involved in starting your financial trade through IG are given below:

Step #1: Open a live account with IG.

Step #2: Browse more than 16,000 markets and select the ones you are willing to make trades with.

Step #3: Use a wide array of tools and resources for finding the first trading opportunity. You should choose a financial trading strategy on the basis of your appetite for risks. Risk management strategy must be employed correctly.

Step #4: You should monitor your first trade/investment through the platform by accessing it via mobile, computer, app, and other devices (PC, Android, Apple iPad, and more).

Buy Cryptocurrencies, Gold, and Stocks Now to Make Money


Financial trading and investment in cryptocurrencies can will help you get a higher return in the long run. ROI from crypto investment is much more than investing in stocks, mutual funds, index funds, real estates, yield savings accounts, investing accounts, real estate investment trusts, fiat currency trading (forex trading), CD rates, money saving in savings accounts, money market returns, exchange traded funds, IRA accounts, and others.

In fact, many retirement funds (saved for retirement) or IRA accounts such as Roth IRAs are allowing cryptocurrency investors to purchase XRP, Bitcoin, Chainlink, and other digital assets of investment in the portfolio so that the prospects of these funds increase due to the higher returns of cryptos. If you are thinking about building wealth, you should include cryptos in your investment portfolio like other crypto investors.

Therefore, it can be concluded that holding Bitcoin Ethereum and other cryptos can help you to build real wealth and multiply your net worth. You can learn investing basics to buy crypto currency and other digital assets to make more gains. You can start going through Wall Street Journal and other investing magazines on cryptos to learn more about investing in cryptocurrencies and make better financial decisions. You can learn about valuation calculation to true bitcoin value and assess the overpriced or underpriced situations instantly.

As a beginners guide, you may also check out the trading basics provided by various cryptocurrency exchanges such as Coinbase, Binance, Kraken, and others. There are many brokers for beginners as well. So, read reviews of customers before joining a crypto exchange. There are many brokers for beginners in the USA through which you can trade and invest extra cash and investible fund in fractional shares and stocks funds.


Choose Cryptocurrency Copy-Trading Bots to Increase Crypto ROI


Cryptocurrency Trading Robots (such as automatically scan the market in real-time and trades for you. They run 24x7, which means that you can keep earning your passive income even when you are sleeping. This gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

Smart crypto investors always remain prepared to get the best of a big market move. They don’t wake up suddenly. To remain alert round the clock, they use cryptocurrency trading bots so that they don’t miss any big market movement. is a Trading Bot, cloud-based platform, on which you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda.

The best thing about the Napbots trading software is that you don’t have to monitor charts and candles to predict your next move. Any novice trader with zero skills can also start trading like a pro and earn money with this unique trading tool. Let Napbots take full control over your trades in just a few clicks. Now, sit back and enjoy earning money.

You may also check “Napbots Review - Simple Way To Increase Your Crypto Returns” before taking the plunge.


What’s so special about NapBots?


NapBots crypto trading software is special because it comes with:

  1. A unique trading algorithm that processes market data for you
  2. A unique crypto trading bot library so that you can create your own mix of trading strategies
  3. Autopilot mode that enables you to automate trading 24x7
  4. An easy-to-use interface so that you can copy the proven strategies of NapBots to make successful trades and make money


How does NapBots help you to Make Money?


With NapBots, you can enjoy financial independence by trading cryptocurrencies on autopilot mode and earn money automatically. To make it work on your behalf, you have to do the following:

Step #1: Connect to one of the available trust exchanges.

Step #2: Select from the unique list of performing Bots of NapBots

Step #3: Choose a plan that suits your investment style

Once you have completed these three steps, NapBots is ready to trade cryptos and earn money for you. Happy Trading!


Why Choose NapBots?


  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
  • The setup and installation process are easy. So, non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.

Related Resources:

If you still need assistance, you can refer to the following step-by-step purchasing guides for the various payment methods: