A market maker does not simply refer to a person. Generally, a market maker is a large institution and a trader is an individual natural person. Market makers will have a certain number of traders doing risk control for them. There are also traders who are not market makers, so they are counterparties in the market.
Trader is a profession that obtains spread profits through buying and selling. A trader can refer to a trader or a market maker representative (Dealer). As a trader, a trader is a general trading institution or individual, and can be a delegate to the trading institution. It can carry out buying and selling operations of financial products such as stocks and futures. Although bank foreign exchange traders also use the English word Dealer, Dealer also means a casino dealer and a market maker (Dealer) who acts as an opponent to ordinary traders in the financial market.
Generally, a trader is a person who acts as a principal or trades for the other party in a transaction. Place a buy or sell order in the hope of earning the difference (profit). In contrast, a broker is a person or company who acts as an intermediary to connect buyers and sellers for a commission.
Excellent traders are the talents that banks, securities companies (investment banks), listed companies, funds, and professional trading companies are most willing to spend a lot of money to recruit, because the level of traders has a huge impact on the company's performance. . French bank Société Générale and British bank Barings suffered huge losses due to traders' irregular operations. For many investment banks, trading is the most profitable business. For example, Goldman Sachs Trading’s revenue accounts for 60% of total revenue.
Traders are divided into two categories: day traders and non-day traders. Non-day traders are very similar to domestic stock trading, because China’s stocks implement T+1, but domestic stocks can only go long. , and there are no restrictions on long and short abroad (long and short are very visual, long is to buy first and wait for the rise, short is to sell first and wait for the fall); here we mainly talk about intraday traders, because most people in China are not familiar with This is very unfamiliar. Intraday traders mainly obtain price difference profits by seizing small fluctuations within a day, that is, through multiple T+0 operations, they accumulate profits.
It is synonymous with market maker, which refers to an independent securities operating legal person with certain strength and credibility acting as a licensed dealer in the securities market who continuously reports the purchase and sale of certain specific securities to public investors. price (i.e. two-way quotation), and accept the buying and selling requirements of public investors at this price, and conduct securities transactions with investors using its own funds and securities. Buyers and sellers do not need to wait for the counterparty to appear, as long as a market maker comes forward to assume the counterparty, the transaction can be completed.
Market makers maintain market liquidity through this continuous buying and selling to meet the investment needs of public investors. The market maker compensates the cost of the services provided through the appropriate difference between the buying and selling quotations and achieves a certain profit.