Posted in Finance, Accounting and Economics Terms, Total Reads: 511
The basic definition of the word Aggressor is that it is the entity that attacks first in any war or altercation.
Let us understand the meaning of Aggressor in financial terms. So with respect to trade an aggressor is a person who will initiate a deal. So in general a person who initiates a deal is always called a Aggressor. So the aggressor is the person who is very aggressive in a deal and would do all in his hands to have a financial gain at the end of the deal. He way also attempts to instigate the other person in the deal so as to ensure a high financial gain.
In the cases where we have a dealer helping or assisting the two parties in a trade, the dealer usually takes a passive role and just helps the trader, while the aggressor is the person who will be posting quotes related to buy or sell in a trade.
In many of the trade flows we can basically differentiate between a positive or a negative trade flows depending on whether the Aggressor is buying or selling.