Anyone who starts trading in financial markets has heard the term “trader.” This is probably one of the most popular Forex terms. Let’s find out who traders are and what they do.
Anyone who starts trading in financial markets has heard the term “trader.” This is probably one of the most popular Forex terms. Let’s find out who traders are and what they do.
Trader - a trader engaged in the purchase and sale of valuable assets and speculating on the difference in prices.
At its core, a trader is a financial specialist who speculates on price differences. A trader works on the platform that the exchange provides, or on the platforms of the OTC market. The basis of their work is the exchange of one specific asset for another asset, at the best price.
Types of valuable assets that traders work with:
The trader chooses the asset with which it is more convenient for him to work. As a rule, it depends on the experience of the trader, because you not only need to choose an asset, you need to be able to work with it, know about the demand for it, predict the rates, price volatility and market sentiment. At the same time, the trader should be able to analyze the market situation, both for short and long terms.
Often traders do not work for themselves but get a job in the government or in specific organizations. When hiring, they pass a strenuous test.
A professional trader should have the following skills:
Many often confuse a trader and a broker. The difference between them is quite large.
Differences between traders and brokers:
Pros and cons of the trader
Pros:
Minuses:
Traders make various financial transactions. Moreover, depending on the type of financial transaction, the traders themselves also differ.
Financial transactions vary:
1. The form of ownership. They differ in operations performed by companies whose staff includes traders and operations performed by traders who work for themselves.
2. The duration of transactions. Such operations are divided into:
3. The objectives of the transaction. The objectives of financial transactions often differ from each other. There can be many variations. As a rule, the goal of any financial transaction is the same - to make a profit. But how this is achieved is different. Some people prefer to speculate on price volatility, others trade with maximum risk hedging. Some use financial markets to invest.
In general, we can say that for a trader, trading in financial markets is not just a job, but a way of life. It is necessary to devote a lot of time to this, have great patience and constantly adapt to the changing financial market.