Definition – What does Short Term Trader mean?
A short term trader is a currency trader who enters and exit trades within the day. There are two types of short term trader:
- Day traders: This type of trader may hold a position for minutes or hours, but less than a day.
- Scalpers: This type of trader will usually hold a position for less than an hour, and often less than 5 minutes.
ForexTerms explains Short Term Trader
Short term traders depend heavily on technical analysis, charting and systems to support their trading strategy. For extremely short term traders like scalpers, using forex trading software is usually necessary. Short term traders are considered to be the opposite of fundamental traders, but there is a lot of middle ground where fundamental traders make short term trades and short term traders make longer term trades.