Who are Day Traders and Speculators?
This group of trading speculators and day traders forms the majority of the trades in the market place: these are major players in trade accounting for 95 % of all daily trade market turnover.
Indices Trading or Indices Trading is one of the popular online market providing liquidity to trading investors.
The trading spot market is one the liquid online market. Spot, meaning that indices transactions are settled within one banking day. There is no central exchange of physical location. Indices Trading transactions take place over the counter, 24-hours a day directly between the 2 computers connected through the internet.
Indices Trading market participants include corporations, brokers, indices trading liquidity providers, individual indices trading retail investors & hedge funds. With the advent of electronic internet online platforms, self-directed indices trading investors, retail traders & smaller financial firms now have access to the same indices trading liquidity as larger indices trading participants provided for by online brokers.
Speculation indices trading makes up 95% of the daily volume. This makes the speculators to collectively to become the big players. Speculators traders provide a lot of liquidity and should therefore a company or an individual want to participate in indices for another there is always someone willing to buy or sell at any time this market is open because transactions are settled in the online exchange where all the trade transactions are done anonymously.
If there was no one wanting to buy the you want to exchange online, then you would have to wait to someone who wants to transact with you and that is the only time you can trade indices. But because of the online floating market, there is always someone willing to trade and they can do this from anywhere in the globe as long as they are connected to the online stock market. This means there is a lot of liquidity in the online trading and therefore online stock traders can trade the market by opening and closing stock trades because there is always someone willing to trade with them through this online exchange market.
Most of these trading speculators and day traders will trade indices for purpose of making a profit from the movement of prices.
The trading speculators and stock day traders accomplish one of the most important functions of Trading market, and that is to provide liquidity and thus play an important role in the overall trading activities. The trading speculation activities are not clearly defined because many of the players such as banks also have speculative indices trading interests same as those of the retail investors & indices trading retail traders.
Indices Trading is very popular with day traders and trading speculators because of the liquidity with which indices positions can be opened and closed and also because of the large amount of leverage that can be obtained from the online brokers thus increasing profit margins for these trading participants. However, trading leverage can also increase losses in stock indices trading and therefore beginner traders should take time to learn about how leverage increases both profits and losses and learn the trading money management guidelines used in indices that they should also use when trading the stock market. Stock trading leverage & money management rules are explained on this learn website within the learn tutorials section of this website.
The structure of the online exchange is:
Online Market >>> Indices Trading Liquidity Providers >>> Brokers >>> Indices Trading Retail Traders
Retail indices through online brokers, using trading platforms that connects traders with their broker through an inter-net connection. Through this online platforms the traders can login and then Trade from anywhere in world provided they have an internet connectivity.
Most of these day traders will only take part & trade during the busiest hours only.
Best Hours for Day Trading - How to Trade the Market for Day Traders
To help beginners learn how to trade in Indices Trading market & practice trading this online market, online brokers offer a free practice trading account called a practice trade account that beginner traders can practice trading using virtual money, this demo account also helps beginner traders learn how the trading platform works.
About Learning Trading for Trading Speculators & Day Traders
To also help indices novice traders to learn how online trading works, we have provided a collection of learning indices guides and strategies that can help the beginner traders to learn how to trade market and get the knowledge required to before starting trade online.
All these lessons can be found on this Page: Learn Trading Topics for Beginners and novice traders can also find a listing of all the popular Strategies that you can use to analyze charts on this page: Trading Strategies That Work.
