Trading being the hot topic of today's era is a very good source of side income even having the capability of becoming a  full fledged career as well. But have you ever wondered what is Trading and what is its type and how it functions etc.

What is Trading?

Selling and Buying of financial products such as stocks, currencies, commodities and many more with the purpose of making profits that means Trading. 

What are types of Trading in Stock Market? And how many types of Trading in India are used?

There are many types of Trading and many ways to Trade in India but the broad type that we will cover in the upcoming blogs will be 

1. Day Trading/ Intraday Trading
2. Scalping
3. Swing Trading
4. Momentum Trading
5. Delivery Trading
6. Positional Trading
7. Fundamental Trading
8. Technical Trading
9. Option Trading
10. Algorithmic Trading
11. Forex Trading
12. Commodity Trading

Let discuss the Trading types : -

1. Day Trading- Day Trading also known as Intraday Trading is a type of Trading wherein a trader sells and buys the trade within the same day itself that is known as Day Trading.
2. Scalping- In this form of trading a trader enters the market for a small duration so as to earn profit through small fluctuation of the price. This type of trader trades for a small duration of time but uses big lots/sizes to trade.
3.  Swing Trading- The Swing Trading is a middle method between day trading and long-term trading as in this type of trading a trader can hold his/her position for a few days and for a few weeks as well. In this type of trading traders focus to capture price swing and price trends over a longer timeframe.
4. Momentum Trading-In this type of strategy a trader buys the trade in on a high price and sells the share when its price is higher than the price he has brought it in.
5. Delivery Trading- In this type of trading the trader buys shares and holds it for a long period of time which can be few weeks or few months or even years too, in this there is no specific time so as to when one has to sell the shares. 
6. Positional Trading- Positional trading is also referred to or can be counted as a long-term trading, as in this type of trading a trader can hold his/her share for a few days or months or even years. This type of trading is best for traders who are willing to bear the fluctuation of the uncertain market.

   

7. Fundamental Trading- Fundamental trading also known as Fundamental investing or fundamental analysis is a form of trading wherein the price of share depends on the value of a company's assets whose price depends on various other factors.
8. Technical Trading- This type of trading method wherein the trading is done in a more technical manner wherein the data of the past trend and behavior of the market is studied and the present investing decision is done because of it.
9. Option Trading- The Option Trading gives a trader the right or obligation to buy or sell a security in future at a desired price. 
10.  Algorithmic Trading- In this an instruction is executed on the trading account which is pre-programmed for future trades by keeping in mind variables like price, timing and volume.
11. Forex Trading- Forex trading or forex exchange is a method of buying and selling of foreign currency in foreign markets to make profit.
12. Commodity Trading- In a commodity market any commodity or their derivative products are sold or bought. Trading like this is known as “commodity trading ”.

Conclusion

So these were the few Trading types that a trader and trade in, So accordingly choose the best type according to your risk taking capacity and market fluctuation tolerance.