What is a Trader?

Traders can be individuals or organizations working in the financial industry, whose job is to buy or sell financial products such as stocks, bonds, commodities, or derivative products as agents, are hedger hedge channel seeker, arbitrageur trader, or speculator.

What is the difference between Trader and Investor?

Trader and Investor are often different in the timing of holding investment products. The investor will hold products for much longer than Traders, which usually only surf short term.

Trader's mission

Traders, whether amateur or professional, whether they are a retail trader or an organization, are often aimed at profit. In addition, there are some specific types of Traders like hedgers whose goal is hedging.

Trader types

There are many types of Trader, but there are some typical ones as follows:

1. Day Trader

Day Trader is a person trading financial products with a tendency to buy/sell and close orders on the same day before the market closes. Depending on the trading style, day Traders can enter a few orders up to hundreds of orders per day.

2. Floor Trader

Floor Traders are members of stock or commodity exchanges and usually trade on them with their own accounts. Floor Traders are usually subject to the same rules as a floor Specialist, whose traders represent others. To become a floor Trader, you must follow the process and have the required qualifications.

3. High-Frequency Trader - HFT Trader

This is a famous word recently. Most of HFT Traders use algorithms and trade with high speed and large volume to eat small profit and loss difference, but type many orders in a day and ultimately make a big profit. This tactic usually targets a much higher return/risk ratio than the classic strategies of buy and hold. These HFT Traders have often played an important role in creating flash crashes - rapid price crashes - in the recent market.

4. Rogue Trader

Rogue Traders are usually Traders who hire and place orders on behalf of their tenants (under a certain term of work) but place orders beyond their authority. This Rogue Trader word is used extensively in the financial markets, where many Rogue Traders have been making particularly big deals without their firm's consent.

There are also other types of Traders such as Stock Trader, or classifying Day Trader, Swing Trader, Position Trader .... depending on the time to hold the order.

Regardless of the type of Trader, remember, our goal is to manage risk closely and earn long-term profits in the market.

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