Nowadays,
choosing to become a trader is becoming more and more difficult to understand. Furthermore,
the increasing number of suspected frauds (such as the Kerviel case or the
best-known of them: the Bernard Madoff Ponzi Scheme) is linked to the perverse
standing of this profession. In other words, most people have a fiendish vision
of traders.
Nevertheless,
many of us would not be able to define what a trader is. It can be summarized
as a financial or an economic analyst who anticipates market fluctuations and
trade values in order to generate profits. Moreover, they are often incurred by
a bank or a brokerage and investment firm.
So,
what are the reasons why traders are most of the time associated with fraud? Can
traders cause stock market crashes?
One
way to trade is trading for one’s own account: a certain amount of cash is
allocated to traders who will take positions so that they manage to minimize
risks taken against the expected gains. This is for example the case of banks
that allocate funds for this purpose. This is the activity whose legitimacy is
the most criticized, but it represents only a small part of trading activities.
Links:
Arthur GENEIX wants to work for a financial company.
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