Trading Financial trading is performed by professionals who work within a financial institution or corporation. It is also possible for individuals to invest or speculate on a variety of different markets. Trading takes place either in a trading exchange, which is highly regularised or over the counter (OTC) market. Trading consists of buying and selling financial instruments in stock, foreign exchange, fixed income, derivative, commodity or energy markets. OTC trades are negotiated directly between the two parties without the need for an exchange or intermediary. Exchange based trading means that the exchange acts as the intermediary between the two parties. The exchange will take an initial margin (to cover potential losses during the first day) and subsequently either request more margin (if the trade creates a further loss) or return margin/pay cash if the trade is in profit. Please click here to access further articles and resources related to Trading