In finance, a trade is an exchange of a security such as stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument for "cash".
The price is agreed between the buyer and seller on the execution of the trade and is guided by the supply and demand for that financial instrument.
Trading in financial markets is key part of a countries economics, providing liquidity, enabling price discovery, and facilitating efficient capital allocation.
[2] When trading in financial markets, financial traders balance risk and potential reward to attempt to make profit from the trades.
The securities trade life cycle involves: Participants in the financial markets include: This finance-related article is a stub.