Market, trading market

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    Trading marketWhat is a trading market?

    A market is a place where buyers and sellers come together and engage in buying and selling 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 brokersbanks and clearing houses.

    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 a 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.

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