[Grammar] When should i use ed or ing in compound adjectives?

[ibrxan]

Hi!

I do not understand why some words in compound adjectives use ED and others ING. For example:

1. Bribery allegations have been made against several European oil-trading companies. (Why "tradin" and no "traded"?)

I hope you can help me! :-?

 

[emsr2d2]

Welcome to the forum. :hi:

Those companies' business is ... trading in oil.

 

[jutfrank]

A way to understand this is in terms of active/passive. To give you a very simple guide, use -ing when there is an active sense, and -ed when there's a passive sense.

In this case, the company actively trades oil, so -ing is used.