Vidyalelo
Management · Q585

International Finance and Treasury

Graduate and Post Graduate · Management · question 585

Q585

Type of trade members who take position for short period of time or sometimes for only few minutes are classified as

A.
scalpers
Answer
B.
explorers
C.
temporary position holders
D.
professional position holders

Answer: Option A

Solution

Answer: Option A
Solution:
Type of trade members who take position for short period of time or sometimes for only few minutes are classified as scalpers. A scalper, in the context of market supply-demand theory, also refers to a person who buys large quantities of in-demand items, such as new electronics or event tickets, at regular price, hoping that the items sell out. The scalper then resells the items at a higher price.