Note: terms can be acknowledged differently by different parties, e.g. go long means holding a stock to one, while it means buying an FX to XTB (short for selling).

Market is where you and the other party perform exchange (one sells to the one who buys)

Marketplace types

  • ForEx (Foreign Exchange) – exchange the rate of 2 currency types
  • Stock market – exchange of stocks (shares of a business/company)

Exchange types

  • Trade stocks/currencies – done immediately, sometimes almost
  • Invest in stocks/currencies – buy/sell and hold for a set amount of time before selling/buying

Warren Buffet (trader) buys 1,000 stocks at once

1 stock @ $1,000

1,000 stocks @ $1,000,000

If 1 stock price increases by $50, overall gain is $50,000!