Trading accounts
A trading account is opened at a bank or other financial institution and is usually administered by an investment dealer. While traditionally the most common financial instrument to be held in trading accounts are stocks, they can also hold cash, including foreign currency, as well as other financial instruments such as bonds, options, commodities, futures and derivatives. Trading involves the frequent buying and selling of any financial instrument with the goal of generating returns that would outperform the buy-and-hold strategy that is fairly common among investors.
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