Trading is the exchange of values. Whereas, charity is the giving of values. Today, we will look at the two types of trading; the first one is Direct Trading and the second one is Indirect Trading.
Direct Trading
Direct Trading is where both parties directly exchange values (money, products, services etc.). And, either or both parties get their benefits (or profits). The benefits of this, where both parties have control of the exchange activities and know how the activities are conducted.
However, this type of trading does not have leverage, which limits the potential outcomes of direct trading.
The advantage of direct trading is the control. The control; prevent more failures when times are bad, to move the values quickly for other parties in different industries, and the overall profits.
Indirect Trading
Indirect trading where activities made by other parties that are involved indirectly in the above Direct Trading. This can be dangerous to let autonomy for another party to do direct trading, and most of the time not fully aware of when and how the exchange activities been made. Furthermore, need to depend on the other parties from the same side to get the desired benefits from the outcome of the direct trading.
On the bright side, these trading do not limit with high possibilities to leverage many other parties. Which results, in limitless potential of outcomes.
However, indirect trading can be terrible because of its wide reach for quick control. No control over; overall profits, overcomes failures, and without knowing where values go. Which can lead to lesser benefits (or profits) than its actual potential.
Conclusion
These types of trading can be selected depending on the financial backup (which will be discussed more on this). Maybe, indirect trading can be made for larger outcomes with a high potential risk of losing all, but still have their back pillow to fall from other solid direct trading.
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