The trader job is the subject of all fantasies, given that you can earn a substantial sum of money in this profession. It remains in reality different from what can be seen in movies or novels.
Two possibilities are available to this professional: work as an employee or independent.
Trader’s job consists in buying and selling securities, currencies or cryptocurrencies by constantly following the fluctuation of their course.
The trader works on behalf of a bank or a company and their customers who have committed large amounts. Its primary goal is to make these investments profitable in short deadlines. This activity requires the highest concentration level, a spirit of decision, the taste of risk and cold blood for any event.
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What is the job of a trader?
The trader on the stock market buys and sells financial assets (actions, obligations, currencies, options, etc.). It constantly follows real-time fluctuations in stock prices to generate profits.
An independent trader or an employee may specialize in certain assets or stock markets. Therefore, it can become a binary trader, high-frequency trader, energy trader, or forex trader. The latter invests in the currency market (exchange market).
Trader’s missions
A trader manages trading operations and decision-making on the markets daily. It has only one goal: generate profits for its customers and, at the same time, for itself. To achieve this goal, the professional must complete several missions:
Learn about the state of the market and take into account ongoing developments (exchange rates, new laws, new players in the market, etc.). To do this, a trader must maintain a good network and cultivate long-term functional relationships.
Buy and sell titles likely to make value to make profits. Market operators resell securities when they believe they have reached their highest price and that their value is not likely to fall. Generally, the professional will follow the instructions of the clients. A trader is still required to give his expert opinion.
Advice and support its customers in purchases and sales to achieve. The trader must give informed and valuable advice on investment.
Realize benefits and put in place short- and long-term strategies to achieve maximum profits for its customers and himself at the same time. In the jargon of the financial markets, it is called: “Take positions”.
Differences between an independent trader and salaried trader
It is essential to distinguish between independent and salaried traders. The first work for their account and invest their savings. In that case, they need a brokerage service as a trading intermediary.
Reading CTL Markets Review on wibestbroker.com might help you grasp brokerage services offers, terms and conditions. The Internet has created many independent traders at home.
Online trading has thus become highly accessible, thanks to the different free formations. In recent years, many crypto traders have also emerged, specializing in topics related to crypto-currencies and, more particularly, Bitcoins.
Types of Financial Markets
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Bond Markets
These markets offer opportunities to individual companies and governments to finance their investments. Individuals lend money to institutions by buying company or government bonds, which the corporations later return after a given time with an interest in the top. The interest is the payout individuals get in this kind of investment
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Stock Market
These markets trade public company shares. Each share costs a certain amount, and if the company makes a profit, the investor is paid a certain amount based on the value of his stock/ number of shares they own in the company. Stocks are pretty easy to invest in, but most people fail to know which stocks would result in a higher value in the end.
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Commodities Market
Here, investors trade valuable goods and natural resources that may include gold, coal and corn. This kind of market exists because the prices of these goods are unpredictable. Some of these commodities have their prices predicted earlier to be delivered at a specified time in the future.
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Derivatives Markets
A commodity under a derivative market means that its value will solemnly be determined the market value at the time of trading. There cannot be a price placed on it until a similar market turn happens as it had before. In these markets, investors are allowed to manage their financial risks.
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Money Markets
These types of markets have been gaining popularity recently. They provide short term loans and an opportunity to invest earning interests on the amount invested
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Digital Currency Market
With the rise in digital currencies like bitcoin, there is a rise in digital markets that allow you to participate in digital currency trade.
Role of Markets
- Money markets help put savings into more productive use. Instead of money just sitting in the bank, you might want to have a financial institution like a bank open up an account for you that might earn you some interest.
- While prices of commodities in a market are determined by demand and supply, securities’ prices are determined by the trend in the financial markets. They, therefore, determine if an investor will make money or not.
- Financial markets make it possible for investors to sell their securities any time they wish. Financial markets make bonds, shares and stock one of the most liquid assets available.
- Financial markets offer a common ground among investors regardless of their stock value. Investors are all paid the same percentage of interest. It also offers a platform for investors to meet and trade, making available all information needed. This platform, in turn, saves a lot of time, money and effort for all traders involved. It not only builds a platform for everyone to be involved in trading but also provides an opportunity for diversity.
- Bond markets offer a chance for the government and companies to have access to capital.
- Financial markets are a broad business model and offer job opportunities for people both as investors and salaried traders
Financial markets are a great way to start investing, especially if you are unsure what investment you want to take part in or might have a business plan but still need to raise capital. There is a great diversity in what market would work best for you.
