Equity trading is essential to financial markets, enabling investors to buy and sell shares of publicly traded companies. It ensures liquidity, price discovery, and investment opportunities for individuals and institutions.
What is Equity Trading?
Equity trading involves buying and selling stocks on exchanges or over-the-counter (OTC) markets. Investors aim to profit from price movements or invest in growth companies. Participants include retail traders, institutional investors, and market makers.
Key Types of Equity Trading
- Day Trading: Short-term trades executed within a single day.
- Swing Trading: Holding stocks for a few days or weeks.
- Algorithmic Trading: Automated trading based on market signals.
- Institutional Trading: Large-scale trades by financial firms.
Technology in Equity Trading
Advancements like high-frequency trading (HFT), AI-driven analytics, and blockchain are reshaping the landscape, improving efficiency and reducing costs.
Challenges
Traders face market volatility, regulatory compliance, and liquidity concerns, requiring strategic risk management.
Equity trading remains a key part of global finance. For a deeper dive, visit our article on Terranoha.
