Question

observe the business risk faced by a trader trading in daily necessities and a trader dealing in luxury items

Answer 1

Trading in financial markets, is the buying or selling of stocks, commodities, and others.

Traders trading in luxury items are at a safer level than those trading in daily necessities.

Daily necessities

- Daily necessities include stocks like vegetables, fruits and groceries.

- Daily necessities are usually low priced and tend to fluctuate more.

- So the trader will experience more number of loss and gains.

Luxury items

- Luxury items include stocks like gold, silver and platinum

- Whereas the luxury items do not fluctuate as much as the daily necessities and so the chance for gain or loss is less for these traders.

Hope it helps.