Trading

What is trading?


Trading is an English word that means to exchange from one party to another party, the exchange can be in the form of goods or services. It derives the word Trading from the word Trade. Trading terms can do conventionally or modernly.

Looking at its history, we knew the earliest trading activity as 'bartering', namely the exchange of goods that was the simplest before the existence of money.

Well, bartering includes trading which has grown to this day. In the past, the system of goods exchanged for goods, but over time trading often done using goods/services exchanged for money.

With the existence of money, trading activities experience major changes, including the exchange process becomes much more efficient and the term price (demand and supply) emerges.

Because of the increased efficiency, some individuals can use it to get profit compared to the initial capital.

Trading discussed in this blog is trading that refers to trading activities that occur in the equity market or future market. People who trade known as 'traders'.

Trading varies, but here we will discuss trading that refers to activities such as

The foreign exchange market, which offers currency buying and selling at the prevailing exchange rate at a time,

The futures market, which offers contracts between sellers to send orders to buyers at prices according to future contractual agreements,

Or trading in a stock market that offers access to a company by buying and selling ownership of the company.

The point that trading aims to get a profit gained from the difference in price. The term, buy at low prices and sell at high prices. So that way traders can benefit.

In this blog, we will discuss trading in the form of forex trading, stocks, commodities, indices, crypto, and binary options are usually the trading options available at a broker. For an explanation of each of these types you can see below:

Forex

Forex or foreign exchange is a trading/currency trading from different countries that aim to get a profit.

In forex trading, there is usually a currency pair, for example, EUR / USD, GBP / USD, USD / JPY, and others. For more details, you can visit the forex page on this blog.

Stock

Stated, the shares are proof of ownership of equity participation in a company. Well, because it helps to invest capital in a company, the person who owns the shares has a claim on the company's income and assets, may attend the company meeting.

The stock is an attractive investment for the long term. But on this blog itself will discuss stocks but only in the form of stock trading. Stock trading itself can do online.

Commodity

Commodities are goods that traded for profit. It can store the item for a certain period and the item must able to deliver in physical form.

But what we will discuss here is that it does commodity trading through an intermediary broker and not done physically buying but by trading online on commodity pairs.

For example, trading popular commodities such as trading Gold (XAU / USD), oil, sugar, and corn.

Index

The index is the combined price of various stocks in the financial market which combined according to certain categories, which can show overall market conditions.

Usually, the index itself is a combination of shares in a particular country such as the Dow index, SP500, UK100, Hangseng, and DAX.

Cryptocurrency

Crypto or cryptocurrency is a currency that does not really exist in physical form but exists in digital form. Although not in physical form, this cryptocurrency currency has value.

You could say that crypto is the future currency hehe. Which includes the famous crypto is Bitcoin, Ethereum, or Libra which planned to release next year.

Binary Options

Binary options or options are derivatives of financial instruments. Usually, binary options use a financial instrument such as forex, commodities, crypto, or other financial types.

In binary options, the trader can sell and buy at an agreed price and a predetermined time.

Binary options are one of the simplest trading options. Traders only guess Buy or Sell if the trader guesses correctly, then the trader will profit, but vice versa if one trader will lose.

Perhaps this trading is the most popular and many people are interested in this trading. Because it can get rich quickly and also get poor fast.

There are pros and cons regarding the binary options trading because it is too risky and the determination of the expiration time is arguably similar to gambling.

Maybe next time I will discuss the view of binary options, which until now has heavily debated between forex vs. binary ... XD


Those are some types of trading that will be discussed in this blog if you want to learn more or just want to know the trading you can visit each of these pages. Later you will have taken to the label/category search page related to this trading.

Now, to trade forex, stocks, commodities, crypto, and binary options you need an intermediary which we can call Broker. You can register with the broker or intermediary to trade.

Usually, the documents needed to be trading in a broker are by uploading an ID or KTP / SIM / Passport and Proof of Residence or a document stating your address (can be a water bill/electricity bill/telephone bill, or a Bank Statement).

To choose a decent broker, you must consider the legality of the broker as regulated by various world regulatory bodies such as NFA, CFTC, FCA, ASIC.


What is a Broker?

A broker is a company that functions as an intermediary or bridge (mediator) that connects the market with traders so that traders can later conduct Buy and Sell transactions.

Because this broker functions as an intermediary, traders should choose brokers whose status is clear, regulated, and not haphazard. Would you mind if you were intent on trading and jumping into the market suddenly they fooled your funds taken by the broker? You don't want to, right?

Choosing a broker that trusted or has a good reputation is not a difficult case, because now there is a lot of information scattered on the Internet. But not infrequently. The information you get on the internet is reliable, or just a hoax. So the point is to choose a good broker is not as easy as turning the palm of the hand.

You need to know, sometimes there is some information that looks interesting and gives a good rating on a broker but there is also a bad rating on the broker. If something like that happens, it's natural because each person's views differ on the valuation of a broker, so between sites A and B give a different assessment is a natural thing.

However, behind the natural thing, there sometimes also hidden things in it. For example, there is a site that reviews the good or bad of a broker because it is just looking for profits in it, the owner of the site is looking for affiliate/referral links, is the IB of the broker, or get sponsors from certain brokers.

Well, now there are many mushrooming things like that. On social media too, often people who spread spam links, clickbait, and cheat just to find coins in them.

When you choose a broker you should consider the following things, such as
  • Looking at the broker's regulation, whether registered with several credible regulators such as NFA, CFTC, IIROC, FCA, ASIC or other regulators such as JFSA, MAS, BaFin, CySEC, IFSC.
  • After that, if the broker already registered, you can look for more detailed information about the trading platform used, features, and reliability. Does the broker have their own platforms (for example, xStation, IRESS, Protrader, etc.), and are there popular platforms such as Metatrader (MT4 or MT5) or cTrader?
  • Then after that to trust the broker more, look at the capitalization of the broker whether it is a bona fide broker.
  • After that, you must distinguish the brokers, whether the company is a broker or dealer? DD or NDD, MarketMaker / Bucket Shop, or STP / ECN / DMA?
  • Only, after seeing the type that feels suitable to your trading style, then look at the contents / technical side of the broker, for example regarding the broker's support for the client (CS), the size of the spread in the broker, are there additional costs such as commission fees, swap fees, inactive account fees, or other trading fees.
  • After that, look at the trading accounts provided (for example Micro, Mini, Zero Spread accounts), additional services provided (such as VPS), the amount of Leverage, Margin Call / stop out allowed, and the trading rules that allowed, for example, may and whether to use a robot / EA, use hedging or scalping techniques permitted or not.
  • After that, look at the Deposit / Withdraw option provided by the broker, for example, is there a Depo / WD option via Wire, Transfer, Credit/debit card, or via E-payment (such as PayPal, Skrill, Neteller, Fasapay, WebMoney, etc.)? See also how much the minimum deposit / initial deposit the broker is asking for.
  • Once deemed suitable, you can look for other references about the broker, for example, see the profile/review of the broker, testimonials from several traders who have joined, or look at other information.

Well, those are some ways to consider choosing a broker. For more information, you can also read it on this blog hehe. On this blog, we will divide information about the broker into several channels, such as

Broker Review

In this channel, we will present some information about reviews from several brokers. The review includes information detail of regulated the broker, the deposit / withdraw option provided, the platform used, the type/type of broker, account type provided, the technical side of the broker, and other matters related to the broker.

Broker Info

In the Broker Info section, we will present some information about the broker. Including tips on choosing a broker, news about a broker, broker recommendations, or some other things that still have to do with the broker. Thanks.


Besides information on trading and brokerage. In this blog, there will also be a little review of automated trading carried out by robots.

What is a trading robot?

Forex trading robot or often referred to as Expert Advisor is an electronic tool that works to find open trade opportunities, both open sell or buy on the forex market.

Robot or EA is not physically, but software for forex trading automatically. Without you doing the Buy / Sell command, the robot will do it yourself for you. So, for traders who have more capital and still can't profit consistently when trading manually, this is the best solution (besides copytrade). For more details, you can visit the page:

Trading Robot

Well, there are some categories in this blog for discussion about trading. For your attention, thank you.