All field notesTRADING BASICS · 4 MIN READ

Trading starts with an exchange.

What trading is, and how it differs from investing.

A transaction and a time horizon

Trading is buying and selling assets such as shares, bonds, currencies, or commodities. A trader generally aims to benefit from shorter-term price movements. An investor more often focuses on the long-term value or income of a holding. Both can lose money, and the label does not make a strategy suitable for you.

A quote is not an execution

Displayed prices are not guarantees of the price you will receive. The bid and ask, order size, market liquidity, and the type of order affect an execution. Fees, taxes, and currency conversion can change its total cost.

Separate research from a real order

Marketwise is a learning and research tool. It does not provide brokerage accounts, take deposits, or execute trades. Practice describing why you are making a decision, what could invalidate your view, and what loss you could afford.

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