What does it mean to be a Forex trader?
In the financial field and currency markets, a trader is the person or entity responsible for the purchase and sale of financial instruments of all kinds. It is called Forex Trader to the agent who can assume the position of intermediary, speculator and even as a hedge operator in this large foreign exchange market.
More generally, they are those who are engaged in the purchase and sale of financial products on a daily basis. Now, entering in the Forex market, a Forex trader is the one that is capable of exercising currency trading, functioning as the broker between the merchant and the market. These people can work independently or work for a financial institution, such as banking institutions or an investment fund, among others. In the finance world, the trader’s role is of paramount importance and this is the reason why we have to give them the value they deserve and learn a little more about the work they do.
These traders usually perform their work in rooms called trading floor, term that we can know more as a trading room, where they are usually given access to about 6 or 8 screens of different computers. In this way these people have the ability to have greater control over the behavior of different financial markets as it is Forex and have the possibility of conducting analyses and forecasts with certainty when making a capital investment on it. Generally, the work they do is in order to generate benefits or in the worst case, losses to the financial institution to which they belong. However, these institutions have a maximum spending limit, so this trader can give you the great benefit of being able to generate great profits and also, let the institution have renown and an impeccable reputation in front of its customers. Traders belonging to these financial institutions are remunerated, and these remunerations are really high when compared to other professions, also knowing that traders at the end of the year charge an extra profit depending on what the entity has managed to gain thanks to its work. Sometimes this extra money goes far beyond the fixed salary they have.
Currently, the boom in technology gives the trader the opportunity to do their job from the comfort of their homes because all they need to do is a computer that has the availability of surfing the Internet. Although it is also necessary to recognize that in trading parquet is still working at a very good pace even though they are becoming obsolete.
What is the difference between a trader and a broker?
Numerous times it has occurred that people fail to differentiate the work that a trader does against the broker’s work and is usually a confusing issue, putting these two in the same group. But here we explain the clear difference between these:
The trader is the person who is specialized in buying and selling products, such as currencies. While on the other hand, brokers are the people or entities responsible for playing the role of intermediary between the financial markets and the traders.