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    Functions of a trading account

    Private persons as well as businesses can open trading accounts and deposit a certain amount of money for executing trade transactions. The minimum amount of deposit is usually set by the financial institution and sometimes even the legal regulations of the state.
    While trading accounts are usually considered for shorter term transactions than investment account at a brokerage, there is no specific regulation defining the border between them. The time period during which an open position is held in a trading account is based on a strategy executed by the trader. A position trader could hold open position from months to even several years. Swing traders usually hold their positions open for days to several weeks, while day and scalp traders do not hold overnight positions.


    Before opening a trading account, it would be useful to get acquainted to different types of trading accounts and other available options. The easiest way to open a trading account is to visit an online brokerage website. There you can find all the information about the offered services including trading accounts.

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