Market, trading market

Trading market

What is a trading market?

A market is a place where buyers and sellers come together and engage in buying and selling of goods and services. Such a market can be a physical place, or it can be an electronic infrastructure created by various financial institutions such as brokers, banks and clearing houses.

Online brokers allow easy access to the world-wide markets of currencies, commodities such as metals or oil or company shares:

The term market can also refer to exchange markets in special, including stock markets, such as the New York Stock Exchange.

For a trading market to be competitive, there must be more than one buyer and seller. The more market participants – or traders – there are, the more efficient the market. This efficiency created through many active buyers and sellers is also called liquidity.

A market with single seller and multiple buyers is a monopoly. A market with a single buyer and multiple sellers is a monopsony. These are the extremes of imperfect competition.

One goal of traders is to understand and predict the price movement in a market. The price movement is influenced by the law of supply and demand and the market sentiment.

Techniques used to predict the movement in a market can be roughly split into two disciplines: fundamental analysis and technical analysis. At tradimo, we believe that even if a trader wants to focus more on technical or fundamental analysis, it is very beneficial to develop a solid understanding of both.

Discuss markets in our forum or learn about them with the help of our articles and videos:

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