Trading primarily refers to buying, holding, selling and short-selling of financial instruments. This also means transfer of ownership of goods from one entity to another by getting something in return from the buyer. Its original form of trading was barter where traders traded bills, paper money, metals and minerals.
Trading minerals can be the most ideal means to boost the economy of a certain country. Canada’s economy for instance; it greatly depends on international mineral trading to support their economy and sustain a high standard of living. This kind of trading contributes much on Canada’s international trade position in 2011, and has been even elevated in 2012 because of high prices of commodities and continuous global demand.
As trading talks on imports and exports continue, Canada’s mineral trading has been very successful in these fields with their partnership with United States. Canada-US partnership in mineral trading marked 50.1% on total mineral exports and 50.4% on imports. European Union, China, Japan, Peru and Mexico were also among the largest mineral trading partners of Canada next to United States.
Trading minerals can be very enticing for traders, but actually entails great responsibility. Traders must think on working with best binary options broker as part of the basic strategy. Diversifications as expanding into new areas of trading comes next to cope up the risk of trading minerals. Canada actually applied this concept in trading; as their trading transaction with US declined in 1999, they think about another option as considering other countries to be the next destinations of their mineral products. As mineral trading of Canada becomes more diversified, some market risks have been alleviated.