Large Trader

Categories: Trading

Big boys with beards. That's what they all looked like in the '70s and '80s. Big checkbooks, big guts. Just a big guy who happens to trade stocks. A dude who's six-foot-seven and 350 pounds, who makes his money buying and selling securities. Regulators want to know about these large traders in case there's a fire on the NYSE floor, or they ever need a bouncer for the SEC's Christmas party.

Actually, the distinction comes from the amount of trading a person (or organization) does, not their physical size. It matters because the SEC requires certain disclosures if a trader has a high enough volume of activity.

A "larger trader," from the SEC's point of view, is someone who trades stocks or options at a volume of at least 2 million shares, or $20 million in a day. Or, alternatively, 20 million shares, or $200 million in a month.

If you happen to move volume above the threshold (and really, who doesn't?), you have to register with the SEC and will be subject to certain increased reporting requirements.

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