Trading is the purchase or sale of a specific goods or a security. It can be either an equity or currency (Forex) or debenture, and this is done via a brokerage firm. Individuals can have trades done through a registered representative (a licensed Financial Industry Regulatory Authority broker) and make trades online or offline with a trading firm.
Trading can be done either in a cash account or through a margin account. Cash accounts require all transactions to be paid for in full by the settlement date three days after the trade execution. Margin accounts allow the investor to borrow money for the purchase of securities in hopes that they will not go down in price and a margin call for the difference is demanded by the brokerage firm.
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