Article: Why Markets Need Traders

Discussion in 'General Trading Discussion' started by longtermbull, Feb 9, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Some investors will suggest that short-term market traders can help to over exaggerate price movements on the upside and the downside. This may well be correct because sustained buying or sustained selling of a relatively small company can impact the share price no matter what is going on behind-the-scenes. Well at least in the short term!

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  2. rakhi

    rakhi Active Member

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    As technology increases and trading innovation continues, the world is seeing an expansion in the types of trading instruments that can be used.
     
  3. gowiththeflow

    gowiththeflow Senior Investor

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    Short term traders add liquidity to markets - vital for investors wanting to buy OR sell.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Agreed.
     
  5. kirtimeliwal

    kirtimeliwal Senior Investor

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    Traders play an important role in the growth of the market. Traders are participants in the market who buy shares in a company with a focus on the market itself rather than the company's profile.

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  6. Chartman

    Chartman Senior Investor

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    Traders will buy oversold shares and short overvalued shares allowing markets to arrive at the "optimum level" for a share price.
     
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