What is Trading ? Major Type of Tarding

🧠 What is Trading?

Trading means buying and selling financial assets like stocks, forex, commodities, or cryptocurrencies to make a profit.
Traders take advantage of price movements — when the price goes up or down.

⚙️ Major Types of Trading

1. Intraday Trading (Day Trading)

Meaning: Buying and selling the same stock within a single day.
Goal: To make quick profits from small price changes.
Time Frame: Minutes to hours — trade closes before the market ends.
Example:
Suppose you buy Tata Motors shares at ₹900 in the morning and sell them at ₹910 before the market closes — you earn ₹10 per share profit.

📊 A trader sitting with multiple screens showing stock charts, buying and selling in a single day.

2. Swing Trading

Meaning: Holding stocks for a few days to weeks to profit from short-term price trends.
Goal: Capture “swings” in the market — upward or downward moves.
Example:
You buy Infosys shares at ₹1,400 and sell at ₹1,550 after a week — that’s a ₹150 per share profit.

📈 A chart showing a zig-zag pattern with “buy” at the dip and “sell” at the top.

3. Position Trading

Meaning: Holding an asset for months or even years — similar to investing but with timing.
Goal: Capture long-term trends using both technical and fundamental analysis.
Example:
You buy Reliance Industries shares at ₹2,000 and hold them for 6 months until it reaches ₹2,600 — profit ₹600 per share.

📆 A calendar showing long-term growth chart.

4. Scalping

Meaning: Very short-term trading — holding trades for seconds to minutes.
Goal: Make small profits many times a day.
Example:
A trader buys HDFC Bank shares at ₹1,500 and sells them at ₹1,501 in a few minutes. Repeats this dozens of times daily.

💻 Fast-paced chart with quick buy/sell buttons.

5. Options Trading (Derivatives)

Meaning: Trading in contracts (not actual shares) that give the right to buy or sell a stock at a fixed price.
Goal: Profit from price prediction without owning the stock.
Example:
You buy a Call Option for Nifty 22500, expecting the market to rise. If Nifty rises, your option’s value increases, and you sell it for profit.

📜 A contract paper showing “Call Option” and “Put Option”.

6. Forex Trading (Currency Trading)

Meaning: Trading one currency against another (like USD/INR or EUR/USD).
Goal: Profit from changes in exchange rates.
Example:
If you think the US Dollar will rise against the Indian Rupee, you buy USD/INR. When it rises, you sell to earn profit.

💱 Flags of countries with currency pairs and arrows showing up/down movement.

7. Commodity Trading

Meaning: Trading in physical goods like gold, silver, crude oil, or wheat instead of company shares.
Goal: Profit from price movement in global markets.
Example:
You buy 1 lot of Gold at ₹70,000 and sell at ₹72,000 — profit ₹2,000.

🏅 Gold bars, oil barrels, and silver coins on a trading chart.

8. Cryptocurrency Trading

Meaning: Buying and selling digital currencies like Bitcoin, Ethereum, etc.
Goal: Profit from crypto market volatility.
Example:
Buy Bitcoin at $40,000 and sell at $42,000 — profit $2,000.

💰 Bitcoin and Ethereum icons on a digital screen with price charts.

9. Algo Trading (Automated Trading)

Meaning: Using computer programs (algorithms) to automatically buy/sell based on conditions.
Goal: Trade fast and emotion-free using coded strategies.
Example:
A system buys a stock automatically when its price crosses a certain moving average.

🤖 Robot trading on a laptop screen with stock charts.

10. BTST / STBT Trading

BTST (Buy Today Sell Tomorrow): You buy a stock today and sell it the next day before it gets added to your account.
STBT (Sell Today Buy Tomorrow): You sell first (short sell) and buy the next day to cover the position.

Example:
You buy Infosys at ₹1,450 today and sell tomorrow at ₹1,470 — ₹20 profit.

Image idea:
📅 Arrows showing “Buy → Hold 1 day → Sell”.

🏁 Summary Table

Type	Holding Period	Risk Level	Profit Potential	Example
Intraday	Within 1 Day	High	Medium	Tata Motors ₹900→₹910
Swing	Few Days/Weeks	Medium	High	Infosys ₹1400→₹1550
Position	Months/Years	Low	Medium	Reliance ₹2000→₹2600
Scalping	Seconds/Minutes	Very High	Low (but frequent)	HDFC ₹1500→₹1501
Options	Days/Weeks	High	Very High	Nifty 22500 Call
Forex	Any	High	High	USD/INR
Commodity	Any	Medium	Medium	Gold ₹70k→₹72k
Crypto	Any	Very High	Very High	BTC $40k→$42k
Algo	Automated	Medium	Consistent	Auto Buy/Sell System
BTST/STBT	1 Day Gap	Medium	Medium	Infosys ₹1450→₹1470