Let's focus on the direct market participants, the traders themselves.

On a fundamental level, we can split them into two groups, the buy side and the sell side. These terms represent distinct but interconnected groups of entities. The term buy side refers to firms and individuals who use financial instruments either for their own needs or on behalf of their clients. The sell side includes firms and entities that create or help to issue these financial instruments and distribute them to the buy side.

Let's start with a closer look at the buy side. We can differentiate between individuals on the one hand and larger entities like companies and governments on the other.

Retail and individual investors are individual players in the market, often saving for personal milestones. Governments and their agencies interact with the financial markets mostly as issuers of debt. However, they also might engage in currency operations and hold large investment portfolios sometimes through sovereign wealth funds. These are state-owned investment pools that manage a country's reserves, typically derived from surplus revenues from commodities or foreign exchange reserves with the aim of achieving long-term returns through investments.

Companies too are market players. We have financial corporates like banks and institutional investors, and then the non-financial corporates Financials include institutional investors as well as banks. Institutional investors are basically big organizations that pool together a lot of money and then use this money to invest in things like stocks, real estate, and other kinds of assets. They do all this for the people or groups they represent with the main goal being to make enough returns. These returns are important because they help meet certain financial needs or hit investment targets that have been set. Now, how these investors play the game can vary. Some are what we call real money investors. This refers to long-term investors like pension funds or insurance companies. They typically invest with a longer horizon and are more focused on asset allocation and diversification. Others are fast money investors. Fast money refers to entities like hedge funds that often engage in more speculative and short term investment strategies. They may quickly move in and out of positions to capitalize on market movements and often apply leverage to boost returns. In addition to institutional investors, banks are significant players in the financial group of the buy side. They usually are frequent debt issuers and also actively manage their various financial risks. They also hold vast investment portfolios. Non-financial corporates are companies whose primary operations and objectives are not related to financial services or transactions. They are involved in a wide array of other industries, but even these corporates engage in financial activities to support their primary non-financial business. They engage with the financial markets primarily as issuers of debt and equity to fund their operations and growth strategies. However, through treasury operations, they also become investors managing their cash reserves and hedging operational risks.