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Who are the Indices Trading Market Participants?

The list below explains the various stock indices market participants who trade in the online stock indexes market.


About The Various Indices Trading Market Participants

To know more about each of these Indices Trading market trading participants we shall look at the various categories of those taking part in Indices Trading and also discuss how each of these stock indices market participants influence the stock indexes trading market.


  • Banks - Indices Trading Market Participants

These large banks transact billions of dollars daily on behalf of commercial companies, indices brokers, their indices customers and retail stock indexes traders. Some of these indices trading transaction activity is undertaken on behalf of corporate customers while some activity comes from the banks treasury room which also conducts a large amount of indices transactions, where dealers are taking their own indices trading positions to make profits.



  • Liquidity Providers - Indices Trading Market Participants

These indices trading dealers handle large amounts of business, facilitating online indices trading transactions and matching anonymous counterparts for comparatively small fees. With the increased use of the Internet, a lot of this indices trading business is conducted on electronic systems that are highly efficient in connecting many online stock indexes trading brokers.


These indices trading dealers deal with financial firms or retail indices brokers and provide institutional liquidity to these firms.


Indices Trading Liquidity Providers are therefore major participants in Indices Trading because all of the stock indexes trades of indices trading investors and retail indices traders are passed to these liquidity providers who then offset these stock indices orders in the online exchange stock indexes market. Once traders places stock indices orders with their indices brokers who then pass these stock indices orders to the liquidity providers who then place these stock indices orders in the online indices trading exchange market, in what is known as providing liquidity.



  • Commercial Companies - Indices Trading Market Participants

Multinationals and commercial companies taking part in international in Indices Trading for the purpose of indices trading investing as part of their overall investment strategy.


Commercial companies take part so as to invest their money in these stock indices markets.



  • Retail Indices Brokers - Indices Trading Market Participants

The use of the internet has brought about retail indices brokers. These offer indices trading platforms, indices trading analysis, and strategic advice to customers and will place stock indexes trades on behalf of their indices trading clients and facilitate these retail indices trading investors who do not have a lot of money. Indices trading brokers will then provide capital to these retail indices trading investors in the form of stock indexes trading leverage. This group only participates in as far as placing stock indexes trades on behalf of retail stock indexes traders.



The indices brokers will provide bid and ask stock indexes quotes, depending on whether a retail indices trading investor wants to buy or sell, the indices trader will then buy or sell at the current stock indexes price quotes (bid quote - buyer will buy at this indices price, ask quote - the seller will sell at this indices price).


The role of this indices broker group is to only facilitate indices trading transactions between the stock indexes trading market and the indices traders for a small markup called indices trading spread. This group does not therefore hold any indices orders of their own, they just facilitate the stock indexes trading.



  • Hedge Funds

Hedge funds use aggressive indices trading speculation methods to make profits. Hedge funds are indices trading investments that are under the management of experts and professional money managers, the size and liquidity of indices trading is very appealing and the indices trading leverage available in these markets also allows such funds to invest in with billions of dollars at a time in the stock indexes trading market.

 

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