To conduct business, traders employ a wide range of techniques. The classification of trading style can be done using measures such as products traded and Guest Posting the intervals between buying/selling as well methods/schemes. All major trading style types include futures and options trades, stock transactions, currency exchanges, and commodity markets. Stock trading is the buying and sale of shares at a certain stock market. Option trading involves buying and selling options that are the right to buy or sell specific shares/contracts within a defined time period at certain market levels, discover more here.

Forex trading is the act of trading currency pairs online. It means buying one currency then selling it based on fluctuations in the exchange rate. The basis for online commodity trading and futures is contracts. This can apply to goods like natural gas and crude oil as well money investments such as bonds. Short-term and Long-term online trading is based upon the time interval between buying and marketing a particular product. Trading that has a time gap of less than 1 year between purchasing and selling a product is called short term. Trading with an interlude over 1 year is known as long-term.

Most online traders are traders who trade short term. This group of traders trades stocks/contracts in response to price movements over a brief period. The long-term traders follow the rate of growth in companies/industries. They have long-term objectives and trade large volumes. Trading on the short term is classified as swing trading or day trading. As one of the more active trading styles, day trading is considered to be a very popular style. Day trading is a style of trading where buying and selling are restricted to only one day. Day traders buy and sell stocks/contracts rapidly, in just minutes, or within hours, for modest gains. Day traders eliminate overnight risk because they do not hold any stock or options.

Two categories can be made up of day-traders: (1) Scalpers who buy and immediately sell multiple contracts or shares, and (2) Momentum Trades which are traders who act quickly and base their trades upon trend patterns. The processes of day trading and online swing trade are similar. The period between buying and/or trading can be anywhere from two hours up until four days. The swing trader uses contracts and options in order to benefit from slight changes in price. Swing traders are exposed to overnight stock/contract risks. In position trading, there can be a large gap between purchases and sales. This could range anywhere from several days up to a week. Traders who positionally trade online rely on trends over the long term, and performance in their industry or company. Swing traders, day-traders and other types of swing traders are less risky but have higher returns per share. Trading styles are classified based on the strategies used. The technical style of trading is based on the use of advanced trading systems for identifying historical and recent trends. Trading style of an Economist – Trading by economic predictions.