Trading word originates from the word trade, if we focus over this word its sounds like transactions between two parties. In financial markets to this word conclude the same meaning ,it means transactions between two parties, one is bulls and others are bears. There is no third opinion in market either the market will rise or market will fall. Trading refers to transfer of securities for example stock from buyer to seller or vise versa.
The price on which buyers and seller agree is called as negotiable price. The person involves in this trading process is called as trader.
Who is stock trader?
Stock trader can be any person if you know how to trade in financial markets. Stock traders are professional who trade on behalf of company with company funds or individuals trading by theirs self.
Who are individual or retail participants?
These guys buy and sell through a broker or agent .The transaction are made through trading platforms. They make profits if their view goes hand in hand with market.
Who are institutional traders?
Institutional traders are part of institutional activity also called as majorly HNI clients, and has great influence on the markets since they deploy much much huge capital than the retail traders.
Benefits of traders to financial markets?
yes you heard it right friends, financial markets needs liquidity, so tr
aders do that job of providing liquidity the markets and use variety of methods and styles to define their strategies.
Types of traders?
Day traders, swing traders, buy and hold traders BTST traders, momentum traders.
Liquidity??? What is it
Liquidity means there is enough roof for both buyers and sellers in the markets so that the stocks can be bought or sold easily