Market Participants

Chapter 1 - Market participants

Chapter 1, Market Participants, gives a basic overview of the types of market participants. There is a classification of the participants into types and groups. An explanation for why we need traders and speculators in the securities market? The investment risk level analysis by using a Cake and Icing analogy.

Eventually, everyone will get what destiny presents, no less and no more.

Cake and Icing, Topic 1.4, Chapter 1

In a marketplace, there will be buyers and sellers of different kinds of securities for varied reasons. That's what makes equity, bond, and commodity markets dynamic. On any given trading day, millions of shares exchange hands through stock exchanges. The market participants risk their capital in the volatile securities market, intending to earn a higher return on invested capital.

Topics covered

  • 1.1Participants Type
    • 1.1.1Investors
    • 1.1.2Traders
    • 1.1.3Speculators
  • 1.2Participants Group
    • 1.2.1Retail Participants
    • 1.2.2High Net-worth Participants
    • 1.2.3Institutional Participants
  • 1.3Orange Farmer
    • 1.3.1Need for Traders and Speculators
  • 1.4Cake and Icing


The chapter Market Participants covers the classification of investors, traders, and speculators by types and groups with examples.

The topic Orange Farmer describes the role of investors, traders, and speculators and explains the need for traders and speculators in the marketplace.

The Cake and Icing analogy illustrates the investment regions considering market participant's risk levels.