Online Stock Trading description

Trading, on the other hand, involves the more frequent buying and selling of stock.

Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner. Proprietary trading is buying and selling for the trader's own profit or loss. In this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a stockbroker, on behalf of a client. Agents are paid a commission for performing the trade.
Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time. The reverse is also true: trading profits are made by selling at a higher price and buying to cover at a lower price (known as selling short) to profit in falling markets.