If you are reading this guide, then trading is relatively new to you. However, you have no doubt already talked about investing. At this point, you are probably wondering what the difference can be between trading and investing, the two activities being based on the buying and selling of financial assets. We therefore propose in the summary below to summarize the main differences between trading and investing.
Trading: One of the basic principles of trading is to take advantage of small variations in the market to achieve large gains by multiplying them through leverage. Traders therefore make big gains with small variations in percentages.
As part of long-term investment, we do not use leverage , in order to avoid having to undergo margin calls during temporary bearish reversals in the market that do not call into question your investment in a term. In this case you can go for the Global CTB investment option now.
Trading: Trading is a shorter term activity, where positions can last anywhere from a few seconds to a few days.
Investment: It is based on the long term, even the very long term. We’re talking about years, or even decades.
Trading: You can start trading with a low minimum deposit of a few hundred euros at online brokers. Long-term investment is generally practiced without leverage and therefore requires a substantial starting capital.
Most suitable markets
Trading:Forex and crypto-currencies
Investment:Shares , Indices and ETFs
Trading: Basis of analysis for the technique and reading of market sentiment.
Investment: In- depth analysis in financial and macroeconomic matters
Earning potential and risks
Trading offers the potential for quick and almost unlimited gains, but it is also a much riskier activity than investing. Investment: Investing will not make you rich in the short term, but may allow you to prepare for a safe retirement, for example. It is indeed rare for a stock market index to show a decline over the next 10 years, regardless of when you buy.