Quick Finance Tip - Category of Traders

Category of Traders Includes:

• ​Investors - when savers commit money to earn a financial return;
• Hedgers - to offset or insure against risks;
• Information-Motivated - trade to profit from information that they believe allows them to predict future prices.

Ultimately, investors trade to move wealth from the present to the future. Information-Motivated Traders trade to profit from "extraordinary" information about future values. It is important to note, that these two categories of traders are not mutually exclusive. This means, a trader can be both an investor and informational-motivated.