What is 'Trade'

 

Long ago before the advent of money, do you wonder how people got their things? Well, they had a system in place called the barter system where if a person wants something but has another thing to give, he would find a person who has the item desired while requiring the item being offered.

Thus, this collective need is what leads a person to swap their items in hand to fulfill both of their requirements. This is considered an act of trade.

What is Trade?

In simple terms, trade is basically an exchange, voluntary in nature between two parties in requirement of each other’s resources i.e. goods and services.

This system is based purely on the concept of need, having a sort of symbiotic relationship in which both benefit each other. In financial terms, trade basically refers to the sale and purchase of assets and securities between two consensual sides.