Traders control a lot of money and they actually have a huge responsibility in the world economy because we are talking about billions. Maybe you have not heard about trading or traders yet, well, they buy and sell shares, futures, options, currencies, obligations and other financial products. While doing this, traders try to make as much yield as they can. Most of the people will like this, traders will give you an interesting yield, so what is the problem?
The problem is that traders sometimes take extremely high risks and most of the time their employers aren’t aware of these risks. What if it goes wrong? Well, in that case you can lose lots of money. Kerviel, Hunter, Meriwether, Hamanaka and Leeson are 5 great examples of how big these risks and losses sometimes are. These people lost all together 15.7 billion dollars, brought their bank down or were sent to jail. These are definitely not examples to follow. So think twice before you take unjustified risks in financial markets.
The problem is that traders sometimes take extremely high risks and most of the time their employers aren’t aware of these risks. What if it goes wrong? Well, in that case you can lose lots of money. Kerviel, Hunter, Meriwether, Hamanaka and Leeson are 5 great examples of how big these risks and losses sometimes are. These people lost all together 15.7 billion dollars, brought their bank down or were sent to jail. These are definitely not examples to follow. So think twice before you take unjustified risks in financial markets.
Jonas Van der Slycken
I think traders are a necessary evil. They might take risks, but their main job is to help people with no understanding of financial markets. These people would have made more losses on their own, by lack of knowledge, or would never have invested in the first place.
BeantwoordenVerwijderenAnd even though the losses summed up above may seem huge, I do not believe it outweights the profits the commom man has made with the help of the traders.
Sarah