Trader
The Anglicism Trader ( German "trader" ) stands in the financial industry for people or institutions that act as traders of financial instruments or commodities .
General
Their work is the "trading", ie the trade with baseline values . Often, speculatively oriented market participants are understood as traders who take financial risks in order to profitably exploit the market development expected of them . There are also - depending on the interests - the arbitrageurs ("spreaders", from spread ) and hedgers (from hedging ).
The word "trader" appeared in a universal lexicon as "trader" as early as 1863. Traders work for financial institutions as foreign exchange or securities dealers in the cash market and in the futures market or for their own account as proprietary traders . They also include stock market traders , but not stock brokers or lead brokers .
species
Private traders ( English retail traders ) usually act as private individuals for their own account. Institutional traders (also "professional traders"; English institutional traders ) often act on behalf of credit institutions , investment funds or insurers . They usually have access to more markets and trading strategies than private traders. The speculator with a short planning horizon is called "short term trader" or day trader , the opposite is the "position trader" who works with a long planning horizon and holds futures contracts for a longer period of time . Ring traders are called “independent traders ” in Great Britain and “floor traders” in the USA . Unlike "information traders', which their purchase , hold and sell decisions on fundamentals addictive, action " noise traders " (see also Noise ) based on non-price-sensitive information such as rumors or as part of herd behavior .
economic aspects
Trader is an often negative term that is often associated with high-frequency trading . As the large number of types of traders shows, their trading motive is very different. However, they all pursue the goal of taking advantage of opportunities to make price gains . A mistrade - a financial contract with a loss - must be avoided in any case. Before making a purchase or sale decision, they must collect and evaluate all market data and use their opinion to anticipate trends and market developments . If a trader assumes that the market price of the underlying asset will rise ( bull market ), he will open a long position by buying futures and , conversely, a short position in a bear market .
When a “trader scene” is spoken of, particularly active private traders are meant, especially professional traders who try to earn their income exclusively from trading. The trader scene in Germany can be classified as rather small. According to studies by the CFD Association, there are currently around 140,000 trading accounts for contracts for difference (CFD) and foreign exchange in Germany, with many of these accounts also being second or third accounts. It is therefore estimated that there could be around 50,000 to 60,000 active traders in Germany.
Traders usually meet at major industry events such as the “World of Trading” in Frankfurt or Invest in Stuttgart. There are also a number of trading forums and specialized trading websites. Online seminars are also increasingly being offered.
According to the Handelsblatt, the activity of "trading" is frowned upon among ordinary investors in Germany . Many imagine traders as lonely gamblers who do intensive business in front of the computer. However, many see themselves as "serious" traders whose goal is not to make a quick profit, but rather to continuously build up their wealth.
Not every single transaction brings a profit, not even with professionals. Losing deals are part of everyday life for a trader. Depending on the system, a 40-60% win rate is common, although this alone does not say anything about absolute success .
The book author Michael Voigt says: "A technically clean mistrade - i.e. a trade in which you make a loss - is more to me than an unclean plus, because success is based solely on luck - and that is difficult to reproduce." continues to advise traders: “Don't throw your rulebook overboard just because you had a few mistrades; Instead, always pay attention to good money management. "
The criminal law limit of a trader's willingness to take risks is reached when the perpetrator (trader) "only consciously and contrary to the rules of commercial diligence takes on an extremely increased risk of loss in the manner of a player , only to gain a highly dubious profit prospect ".
See also
Individual evidence
- ↑ Wolfgang Grill (Ed.), Gabler Bank Lexikon , Volume I, 1995, p. 679
- ↑ Verlagsbuchhandlung Pierer (ed.), Pierer's Universal Lexicon of the Past and Present , Volume 17, 1863, p. 740
- ↑ Ulrich Becker, Lexicon futures trading: Finanz und Rohstoff-Futures , 1994, p. 612 f.
- ↑ Investopedia.com, April 10, 2019, What is the Difference Between Institutional Traders and Retail Traders? , accessed September 15, 2019
- ↑ Ulrich Becker, Lexikon Terminhandel , 1994, p. 562
- ↑ Ulrich Becker, Lexikon Terminhandel , 1994, p. 496
- ↑ Ulrich Becker, Lexikon Terminhandel , 1994, p. 323
- ↑ Ulrich Becker, Lexikon Terminhandel , 1994, p. 160
- ↑ Wolfgang Gerke, Gerke Börsen Lexikon , 2002, p. 574 f.
- ↑ Wolfgang Grill (Ed.), Gabler Bank Lexikon , Volume I, 1995, p. 679
- ↑ CFD-Verband.de The Steinbeis CFD Study , 2020
- ↑ Termintrader.com/Forum - Exchange in the futures trader forum
- ↑ Handelsblatt.de of November 10, 2012, They're all gamblers, aren't they?
- ↑ Handelsblatt.de of November 10, 2012, Many traders do not know how prices are created
- ↑ Michael Voigt, The big book of market technology , 2006, ISBN 978-3898791250
- ↑ Handelsblatt.de of November 10, 2012, Not every day means a good opportunity to trade
- ↑ BGH NJW 1975, 1234 , 1236
