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What is Trading?

Understand how financial markets work, how traders make money, and why millions of people trade every day.

Trading charts

Financial markets operate 24 hours a day across the globe

What is trading?

Trading is the act of buying and selling financial assets — like currencies, stocks, or cryptocurrencies — with the goal of making a profit from price changes. Unlike long-term investing, trading focuses on shorter time frames: minutes, hours, or days.

Every second, millions of traders around the world are buying and selling assets. This constant activity creates price movements — and price movements create opportunities to profit.

Simple example: You buy EUR/USD at 1.0800. The price rises to 1.0850. You sell. You just made 50 pips — that's a profit. Trading is as simple as predicting whether a price goes up or down.

How do traders make money?

Traders profit from the difference between the price they buy at and the price they sell at. On platforms like Stockity, you can profit from price movements in both directions:

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Going Long (Buy)
You think the price will rise. You buy now and sell later at a higher price. Profit = sell price − buy price.
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Going Short (Sell)
You think the price will fall. You sell now and buy back later at a lower price. Profit = sell price − buy price.
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Time Frame
On Stockity you choose how long your trade lasts — from 1 minute to several hours. Short trades = fast results.

Key terms every trader must know

Before placing your first trade, make sure you understand these fundamental concepts:

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Asset
What you trade. Could be a currency pair (EUR/USD), crypto (BTC), stock index (S&P 500), or commodity (Gold).
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Position
An open trade you are currently holding. Your position is "open" until you close it by selling (or buying back).
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Profit / Loss
The money you gain or lose from a trade. Calculated as the difference between your entry price and exit price.
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Demo Account
A virtual account with fake money ($10,000 on Stockity) to practice trading without any real financial risk.
Stockity app

Stockity's interface makes it easy to place trades in seconds

What can you trade on Stockity?

Stockity gives you access to 140+ assets across multiple categories. This diversity means you can always find opportunities, no matter what the market is doing.

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Forex
Currency pairs like EUR/USD, GBP/USD. The world's largest market — $7.5 trillion traded daily.
Crypto
Bitcoin, Ethereum, and 30+ other cryptocurrencies. High volatility = high opportunity.
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Stocks & Indices
Apple, Tesla, S&P 500, Nasdaq. Trade the biggest companies and markets in the world.
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Commodities
Gold, Silver, Oil. Classic assets that have been traded for centuries — still highly liquid today.

Pro tip: Start with major currency pairs like EUR/USD or popular crypto like BTC/USDT. They have the highest liquidity, tightest spreads, and are the easiest to analyze as a beginner.

Ready to practice?

Open a free $10,000 demo account on Stockity and apply what you just learned — zero risk.

Open Demo Account →