Retail Traders

Definition ∞ Retail traders are individual investors who buy and sell financial assets for their personal accounts, rather than on behalf of an institution. They typically operate with smaller capital amounts compared to institutional investors and often use online brokerage platforms or cryptocurrency exchanges. Their trading decisions are influenced by various factors, including market news, technical analysis, and personal financial goals. This segment represents a significant portion of overall market activity.
Context ∞ Retail traders play a substantial role in cryptocurrency markets, often driving significant price movements due to their collective activity and rapid response to news and social media sentiment. The accessibility of crypto trading platforms has greatly increased their participation, contrasting with traditional finance. News frequently covers trends in retail trading behavior, such as reactions to macroeconomic events or specific digital asset announcements. Understanding their impact is essential for analyzing short-term market volatility.