trading

noun

Trading — the active buying and selling of securities or commodities

Definition

Buying or selling securities or commodities

In depth

Trading is the act of buying or selling securities or commodities, the broad activity underlying financial markets, in which participants exchange stocks, bonds, currencies, or physical goods in pursuit of profit or risk management. The word names both the general activity and, often, a person's profession or specific strategy within it.

Origin

The word descends from Middle Low German trade, a track or course, related to the idea of a well-worn path of commerce or exchange. That image of a established route or course remains embedded in the word's modern financial sense, trading conceived as movement along a well-established, repeated path of exchange between buyers and sellers.

Usage examples

"Trading on the exchange floor had once required physical presence, a tradition largely replaced by electronic systems."
"She built a career in trading, developing an intuition for market movement few of her colleagues could match."
"Volatile trading throughout the session left investors uncertain how the day would ultimately close."

How to use it

Trading is essential, broadly understood financial vocabulary, useful across virtually any writing about markets, investment, and commerce, often combined with specifying terms, such as 'bond trading' or 'program trading,' to indicate a particular market or strategy.

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