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5 Types of Online Trading You Must Know

Updated: Dec 2, 2022

In the past, only rich people could trade with stocks or commodities as the only way was to have a personal broker. Now with the advent of internet technology, the game has changed. It has become possible for anyone from anywhere to trade online and become an online broker. But what are the types of online trading? How can one become an online trader without even breaking the bank ?! Read on and find out in this blog about the types of online trading and the benefits of each type.

The internet and technology paved the way for anyone to trade and even become a professional trader with one click! Every day,millions of online trading transactions take place from all over the globe. These transactions take many forms.

Online Trading Defined

For years, even centuries, trading has only one form or way: the traditional face-to-face sell and buy anything. It was an activity confined only to rich or high-level people. The internet and technology paved the way for anyone to trade and even become a professional trader with one click! Every day, millions of online trading transactions take place from all over the globe. These transactions take many forms. Here are the 5 main types of online trading and their benefits defined :

1. Day Trading

Day trading also known as Intraday trading is one of the most popular online trading types. Usually, professional traders tend to like this type of trading due to its higher-than-average profits. In this online trading, traders sell and buy stocks or EFTs (Exchange Trade Funds) on the same day. Professional traders track the momentum of stocks, indices, or EFTs so they can decide whether they sell first and buy later or the other way around. It is not recommended for beginner traders to do day trading as they still need to learn how to deal with margin trading, which might cause them losses.


Benefits: Higher than average profits and easy transactions.


2. Positional Trading

Unlike day trading, traders can't buy now and sell later. Instead, they need to track the momentum of stocks and look forward to long-term gains. This type of trading does not suit novice or less experienced traders because it needs brave-hearted traders who can overlook small losses and foresee high profits in the long run.


Benefits: Positional trading relies more on technical indicators like RCI, MACD, MOVING AVERAGE, SIMPLE AVERAGE, etc. Higher profits.


3. Swing Trading

Traders of this type are described as the most volatile ones. They professionally analyze trading charts in variant times like 5 or 15 minutes, an hour, or even a day chart. Although swing trading may overlap day and positional trading, it is considered the most difficult among them. More volatile stocks can yield higher profits than other types. Therefore, eager traders prefer this type of trading.


Benefits: Insanely higher profits in case of getting the accurate prediction of the waves.


4. Long-term Trading

Considered the safest type of trading, long-term trading works well with conservative traders rather than aggressive ones. This type includes holding a store for a year, a decade, or even decades and years of a lifetime. Long-term traders depend on analyzing news, and economic calendars, evaluating the balance sheet, studying each industry, and acquiring the needed knowledge to analyze the growth of stocks in the long run.


Benefits: Safer is more suitable for conservative and novice traders who can't risk in deep waters.


5. Online CFD Trading

Trading Contracts For Difference is one of the most popular online trading types nowadays. In this type of trading, you exchange the difference in the price of an asset so that you can speculate the price movement and gain the profit depending on how correct the speculation might be. The main uses of CFDs or Contracts For Difference trading are best 👍.


  • Leverage.

  • Margin.

  • Long and short-term trading.

  • Hedging.


Benefits: High and instant profits in case of getting correct speculations of price movements.


Online trading has become one of the most popular activities nowadays, and all you need is to team up with the right online broker, such as 9BullsFX. At 9BullsFX, you will not only have a trading broker to help you with your trading transactions, but you will also get access to training and educational programs to teach you the steps of correct online trading and put you on the safe and right track of gaining high profits and financial maturity.


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