Who are the key players in the market?

Chapter 1: Introduction

Let's look at some of the major players in the financial markets. What do they do in the market? How to cooperate with each other? If you go into details one by one, I'm afraid it will be too much space, so I'll only give a brief introduction here.

Chapter 2: Market makers

Let's take a look at market makers. As the name implies, a market maker is typically a bank or brokerage firm that "makes" a market by providing information on the bid and ask prices of a commodity (and other regular financial securities). But be aware that market makers do not bring buyers and sellers together.

Market makers use pre-prepared bid-ask spreads to provide a measure of liquidity (yes, that word that begins with L again). Market makers can buy/sell shares at any time, even if there are no buyers in the market. Therefore, their tasks are more related to market activity, it has now become a service.

Most market makers will not reap windfall profits from your losses and prefer to maintain long-term professional relationships with their clients. Market makers serve a wide range of market participants, including foreign exchange traders and large banks.

Chapter 3: High-Frequency Traders

As with most things in life, timing is crucial. The strategy of a market maker is to keep buying and selling, with the expectation of making an appropriate profit from it.

High-frequency traders (HFT for short) are like cheetahs lying in wait in the grass, quietly waiting for their prey to take the bait (the stock goes up or down). Look at the moment and jump up. As technology advances, algorithmic computational models are becoming an important tool for high-frequency traders.

Not far from it are a vast array of other market intermediaries and traders, including:

• Stock brokers

• Advisory Stock Brokers

• Executive brokers only

• Retail traders

Full-service consultants in standard waistcoats will provide you with a variety of advice (including retirement arrangements, reasonable tax avoidance and investment, etc.), but their service charges are not the lowest.

What is the role of the executive-only broker in the market? They are happy to perform all kinds of trading operations on your behalf, as the name suggests, they do not make any trading proposals, and their service charges are relatively low.

Advisory stockbrokers are somewhere in between, typically reviewing your portfolio quarterly or semi-annually, and they will support your trades or operations accordingly.

What is the role of retail traders? It is important to distinguish between traders who keep an eye on stock price movements every day (often referred to as traders) and those who invest only in key periods (e. G., long-term investors).

The goal of a longer-term investor might be to raise money for things like retirement, school or vacation. Although both types of retail traders usually invest heavily, they each have their own different trading hours. Both are still major players in the market.