Business, Legal & Accounting Glossary
Casual trading is a name referred to as a newly developed variant of financial trading. It possesses the same principles that are usually carried out in trading rooms but the use of trading platforms are involved in it that can be operated from the trader’s residence.
All trading actions that are carried out by individuals without the use of a mediator are given a single general name and that is what we call casual trading. We can find them in the stock exchange, foreign exchange, commodities, and other markets.
In casual trading, there are three major markets. These are as follows:
The trading of company stock and derivatives of company stock at an agreed price is called Stock market stock trading and it is also known as equity trading. Both of these two things are securities that are listed on a stock exchange as well as those that are only traded privately.
Foreign Exchange (Forex)
In foreign exchange (currency or forex or FX), a currency pair is selected by the market traders in which one currency is traded for another. The foreign exchange market is by far the largest financial market in the world, having the average daily trade in the global forex and related markets estimated at US$ 3 trillion. In forex, leverage is commonly used by which the traders are able to generate large profits but for the inexperienced trader leveraging is considered quite risky.
Commodities are those things that are demanded, but they are supplied across a given market without any qualitative differentiation. Commodities have the characteristic that their prices are determined as a function of their market as a whole. Generally, commodities are basic resources and agricultural products such as iron ore, crude oil, coal, etc.
Between casual trading and floor trading, the principal differences are in the traders’ experience, volume and location. Usually, trade is carried out by professional traders from the trading floor and carries large volumes. Trade is not carried out by casual traders as a profession but they carry it as an addition to their everyday lives. The casual traders usually trade from their own homes or “day job” offices by using an Internet connection and a trading platform software day trading software, and this software is monitored and regulated by the National Futures Association (NFA).
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This glossary post was last updated: 13th November, 2021 | 0 Views.