Stock trading refers to the activity of buying and selling the stocks, which have been issued as per the market prices among investors.
There are two approaches to trade stocks for investors: first, to purchase stocks directly from the company issuing new shares; second, to buy the stocks transferred or sold by other investors from a secondary market. At present, ordinary investors mainly conduct trading in the latter way.
The major means of stock trade is spot trading (also called cash spot trading), credit transaction, futures trading and option trading. Stock credit transaction refers to the mode of transaction under which, stock trader pays part of the cost of all stocks in a certain proportion or delivers certain amount of stocks to the broker, and the broker pays the rest part for the trader by a bank loan.