Friday, June 2, 2023

Types of Dealers in the Stock Exchange Market

If there’s any way to make money, it’s stocks and bonds. There are people who are investing their hard earned money on various securities. Every day, thousands and millions of securities are sold and bought around the world.

So, who is a speculator or investor in the stock exchange market? Well, a speculator buys and sells different types of securities with the ultimate aim of making quick capital gains as a result of price fluctuations in the stock market. On the other hand, an investor buys securities with the ultimate aim of generating regular income from holding the securities. Their ultimate objective is linked with security investments.

Investors typically hold stocks and bonds for the long term. They earn dividends and interest as rewards.

four types of bookies

1.) bull

A bull is a speculator who anticipates a rise in prices. It buys securities at the current price with a view to selling them at a future date when the prices rise. It buys longs and puts pressure on the prices so that they go up. If her speculation turns out to be wrong, she spreads rumors that prices are about to rise.

2.) Bear

A bear speculator expects a fall in prices. She enters into a contract to sell securities at the current price with the aim of buying them at a future date when their prices decline. He is pessimistic. If the prices fall according to his speculation, he buys them back.

This is called short selling. Unlike a bull bettor who keeps his head up, a bear bettor keeps his head down. She tries to bring down the prices in the stock exchange market through selling pressure called Bear Raid. When his speculations are wrong, the bear grapples. If bear speculators dominate the market, it is called bearish.

3.) lame duck

Lame Duck is a desperate bear speculator. He is desperate because he had committed himself in an agreement to sell the securities to a buyer and the shares are not available in the stock market. The buyer is not ready to postpone the deal.

4.) a slag

A lava speculator applies for securities with the intention that the prices of the shares are going to get listed in the stock exchange market at a premium price. She eventually sells the securities when the prices rise. She makes false demands by sending multiple applications in different names. Lava Bookmaker is a premium hunter.

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