A trader is a person, firm, or entity in finance who buys and sells financial instruments, such as forex, cryptocurrencies, stocks, bonds, commodities, derivatives, mutual funds, and indices in the capacity of an agent, hedger, arbitrager, or speculator.
Duties and types The word "trader" appeared as early as 1863 in a universal dictionary as "trading man."Verlagsbuchhandlung Pierer (Hrsg.), Pierer's Universal Lexikon der Vergangenheit und Gegenwart, Band 17, 1863, S. 740 Traders work for financial institutions as foreign exchange or securities dealers in the cash market and in the futures market, or for their own account as proprietary traders.Ulrich Becker, Lexikon Terminhandel: Finanz- und Rohstoff-Futures, 1994, S. 612 f. They also include stock exchange traders, but not stockbrokers or lead brokers.
Traders buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges, and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, including:
Bond trader. Floor trader. Hedge fund trader. High-frequency trader. Market maker. Pattern day trader. Principal trader
Proprietary trader. Rogue trader. Scalper. Stock trader.
Income
According to The Wall Street Journal in 2004, a managing director convertible bond trader was earning between $700,000 and $900,000 on average.Street's Weather: Bonus Showers - WSJ.com
See also Commodities exchange Commodity market Derivatives market
List of commodity traders List of trading losses Mismarking Stock exchange Stock market Trading strategy
References
External links
no:Trader