Financial trading refers to the buying and selling of assets across markets like stocks, commodities, indices, forex and more.

People and businesses trade instruments as they require those assets. For example, traveling from Europe to the U.S., you may need to convert euros to dollars, participating in forex markets.

However, most of the time, financial traders do not actually need these assets. They speculate on financial markets, hoping to profit from price movements through buying low and selling high.