Common Types of Forex Traders

BUSINESS

LegacyFX Introduction

C o m m o n Ty p e s o f

FOREX TRADERS

Forex Traders

Forex traders deal in the largest financial market in the world.

There are many different strategies for Forex trading, with traders typically falling onto one of six main categories.

BUSINESS

Day Traders Day traders also focus on the shortterm. While they do not work at the same frantic pace as scalpers, they do aim to close all positions within a single day.

Swing Traders Swing traders use technical analysis to identify market trends that will affect currency prices within the coming days/weeks.

Position Traders Position traders typically have the longest holding periods, which can be anything from a few weeks to several years, waiting for the optimal time to make a trade.

Algorithmic Traders Algorithmic traders use computer programs to make trades based on a

Scalpers BUSINESS

specific set of instructions.

Scalpers trade at a fast pace, working

Event-Driven Traders

to spot incremental price movements

Event-driven traders rely heavily on

and making trades in a matter of

fundamental analysis to identify po-

minutes or seconds to take advantage

tential spikes in currency prices due

of these movements.

to world events.

YOU CAN LEARN MORE ABOUT HOW FOREX TRADING WORKS BY VISITING THE BLOG OF LEGACYFX.