Market participants are individuals or entities that engage in buying and selling within a financial market. This group includes investors, traders, brokers, and market makers, each playing a unique role. For instance, investors typically buy and hold assets for the long term, while traders often seek to profit from short-term price movements.
These participants interact in various markets, such as the stock market, bond market, or commodities market. Their activities help determine the prices of assets and ensure liquidity, making it easier for others to buy or sell. Overall, market participants are essential for a functioning and efficient market.