Therefore, trading in financial markets means buying and selling various securities in order to make a profit. Although the essence of creating financial markets is to provide capital for the production sector, in practice, traders do not care about this principle and seek to make a profit from changes in the price of securities. In each financial market, there are different financial instruments for trading. For example, in the stock market, shares of public companies are traded, while in the Forex market, currencies of different countries are traded.  Trading classification  Trading can be examined from different aspects. The time it takes for a trader to enter a transaction and exit it with a profit or loss divides trading into several trading categories: "daily", "scalp", "trend trading", "position trading" and "swing trading". In each of these categories, the model of people's attitude to the chart and the method of analysis is different from the other.  Another type of trading classification is related to the buying and selling model. Spot trading is a type of trading in which the user buys and owns the asset themselves. Spot trading usually does not involve leverage, and if it is leveraged, it is called "margin". In margin trading, traders also buy and sell the underlying asset but borrow some of the money needed to buy it from exchanges. In this case, they are able to trade more than their own assets, which comes with risks and rewards.  Another type of trading is based on derivatives, which is divided into two categories: futures trading and options trading. Derivatives are contracts that derive their value from other assets. In futures trading, the trader does not own any assets or commodities and only trades instruments whose prices depend on the underlying assets. If the transaction of this document has an expiration date, it is called "futures", otherwise, it is called a "perpetual" trade.  An option trade is a contract in which the buyer purchases the option to buy or sell a specific asset. Therefore, although the assets do not belong to the buyer until the expiration of the contract, when the desired time is reached, the buyer can buy or sell the asset by having the option contract.  Each of the types of trade discussed in this section has small and important points that learning can help you become a successful trader. In order to gain more information in this area, it is recommended to read the following article from Faraders magazine.  Who is a trader?  After getting acquainted with trading, it is time to examine the question of who is a trader. A trader is someone who makes a profit in various markets by buying and selling instruments in that market. In the old economic model, a trader is a businessman, but in financial markets, a trader is a person who uses his own capital or the capital of others to buy and sell financial instruments. The price fluctuations of these instruments allow the trader to make a profit.  From this perspective, in answer to the question of who is a trader, we can say that a trader is an investor, but there are major differences between these two groups of actors in financial markets. Investors usually have a long-term view of the markets and do not pay attention to short-term fluctuations. For investors, the financial aspect is not the only issue, and they may seek to gain power in a company. This is different for traders.  A trader is someone who, by analyzing market conditions, buys assets and sells them within a certain time, from a few minutes to a few months, and makes a profit. In fact, a trader does not seek to play a role in the company's management process. The trader's job is to find and buy stocks and other financial instruments in the best conditions from a growth perspective by conducting analysis. Then, as time passes and the asset price increases to the trader's expected level, he sells the purchased shares and makes a profit.