Types of Trading: Fundamentals to Know

There are several types of trading in financial markets, which vary according to strategy and time frame. The most important of these types:

Day Trading: Requires opening and closing positions within the same day with the aim of making quick profits.

Swing Trading: Relies on predicting market movements over several days or weeks.

Position Trading: Requires holding positions for a long period, which may last for years.

Margin Trading: Traders in this type use borrowed money to increase the size of their trades.

Choosing the right type depends on financial goals and the level of risk that the trader can tolerate.