What context can I use each word in?
Learn when and how to use these words with these examples!
trading
Example
He made a fortune trading stocks on Wall Street. [trading: verb]
Example
The trading of goods between countries is essential for the global economy. [trading: noun]
transaction
Example
The transaction was completed after the payment was received. [transaction: noun]
Example
She used her credit card for the online transaction. [transaction: noun]
Good things to know
Which word is more common?
Transaction is more commonly used than trading in everyday language. Transaction is a versatile term that can be used in various contexts, while trading is more specific and often used in financial or business settings.
What’s the difference in the tone of formality between trading and transaction?
Both trading and transaction can be used in formal and informal contexts, but transaction is generally considered more neutral and straightforward, making it more appropriate for formal situations.
