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Online trading involves investing in financial products using a trading platform provided by a broker who will offer a range of different markets and assets. ...When you trade online, you are buying (going long) or selling (going short) financial instruments and speculating on whether the prices will increase or decrease in order to try and profit from market movements. A broker acts as the intermediary between the trader and the markets that they are trading in. Trading online is easy and accessible. Anyone who has an internet connection can open a brokerage account and trade online via electronic trading platforms for desktops, web and mobile devices.
Risk management refers to the processes that are put into place when trading to help keep losses under control and keep a ... good risk/reward ratio. Risk management can help prevent a trader from losing all their money in the account. Risk management should be applied by both beginners and experienced traders. Before we look at strategies that can be used to manage risk in the account.