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Trading is the act of buying and selling financial instruments, such as currencies, stocks, or commodities, with the goal of making a profit from price movements. Traders aim to buy low and sell high (or sell high and buy back lower in the case of short-selling), typically over short to medium time frames. Trading can take place on exchanges or over-the-counter platforms and involves various strategies and time horizons.

In financial markets, buyers and sellers come together to trade assets such as stocks, currencies, bonds, and derivatives. These markets include the stock market, forex market, commodity markets, and crypto markets. Prices in financial markets are determined by supply and demand, and they react to economic news, geopolitical events, and market sentiment.

A trading instrument is any asset or contract that can be bought or sold on a financial market. Common trading instruments include currency pairs (like EUR/USD), stocks (such as Apple or Tesla), indices (like NASDAQ or S&P 500), commodities (like gold or oil), and cryptocurrencies (like Bitcoin). Each instrument behaves differently and may be influenced by specific factors.

A trading terminal is software that allows traders to place, modify, and close trades, as well as monitor market data in real time. Examples include MetaTrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Terminals often include charting tools, indicators, and order management features, making them essential for executing and managing trades effectively.

A trading account is an account opened with a broker or trading platform that enables a trader to deposit funds and place trades in the financial markets. It tracks your available balance, open positions, profits and losses, and other essential trading metrics. Some accounts are demo (for practice), while others are live (using real money).