Trade
 |
Definition of 'Trade'A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of one's goods and services for desired goods and services that someone else possesses. The advent of money as a medium of exchange has allowed trade to be conducted in a manner that is much simpler and effective compared to earlier forms of trade, such as bartering.In financial markets, trading also can mean performing a transaction that involves the selling and purchasing of a security. |
 |
Investopedia explains 'Trade'Trading is not a new phenomenon - we've been doing it for centuries! The trade that occurred among the most primitive humans has evolved considerably over time, and the word "trade" has come to include the complex trading that occurs on the floor of the New York Stock Exchange (NYSE).However, the basic elements of buying and selling in some form of a market haven't changed a bit, because ultimately, trade still involves giving one thing in exchange for another. |
Related Definitions
Articles Of Interest
-
Forex: Finding Your Trading Style
Determine your own trading style, and the versatile currency market will accommodate it. -
What Is International Trade?
Everyone's talking about globalization, so we explain what is it and why some oppose it. -
10 Steps To Building A Winning Trading Plan
It's impossible to avoid disaster without trading rules - make sure you know how to devise them for yourself. -
Do I own a stock as of the trade date or the settlement date?
When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which is simply the date that the order is executed in the market. The second ... -
What causes a significant move in the stock market?
There is a nearly infinite number of factors that can cause the stock market to move significantly in one direction or another. This can include such things as economic data, geopolitical events ... -
Why won't my broker allow me to sell one stock and buy another on the same day?
There are two likely reasons why a customer would be unable to buy and sell a stock in the same trading day. For simplicity's sake, let's assume that you are trying to sell a stock that you own ... -
What Is The World Trade Organization?
The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it? -
War's Influence On Wall Street
Blitzkrieg? Dawn raids? Sounds like the markets and the battlefield have a few things in common. -
The Auction Method: How NYSE Stock Prices are Set
The New York Stock Exchange (NYSE), sometimes referred to as “the big board,” is the oldest and largest stock exchange in the United States. NYSE is the place investors think of when ... -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio.
Free Annual Reports