3 important types of traders that you should know

  • Posted on: 31 March 2017
  • By: admin

The penny stock alert review which come from various sources should be vital and trustworthy as the trading job goes for quite some time now there are companies who are willing to take the risk in order to get what they want and succeed from earning penny. Actually there are no requirements for you to eligible in dealing with stock market as long as you know what you are doing and you fully understood the process of how does it work then you shouldn’t miss a day trading and having an exchange of stocks alert. Click here to know more about stock alerts.

As mentioned previously - there are generally 3 types of traders:

1. Proprietary traders are traders who use the banks money to try and make money. They basically take on views on which direction the market will go and will try and make money from this by typically buying low and selling high (at the simplest). Hedge Funds are an example of proprietary trading.

2. Market Making (Flow Trading) is much more common within Investment Banks. Typically, in an Investment Bank the ratio of the 2 activities will be 80% market making and 20% proprietary trading. Some Investment Bank's don't even do proprietary trading. These traders help fulfill the needs of the client. That is to say that whenever a client wants to buy or sell a security, they will go through a trader and the trader will buy/sell it for them- regardless of whether the trader thinks it’s a good investment.

3. Physical Commodity Traders are traders who buy from commodity producers i.e. the mines, smelters, farms etc. and they then trade this with their counterparties. This is the type of traders who are willing to have a stock alerts in their email marketing to gain more business prospects.

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