Trader


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Trader

An investor who makes many trades throughout a trading day, buying and selling securities in order to profit from short-term changes in prices. For example, a trader may buy Stock A at $15 per share because he/she believes it will be $18 a few minutes, or hours, later. Traders engage in high risk activities because there is no guarantee that the price will move in the desired direction. However, traders provide a great deal of liquidity to the market. See also: Registered Competitive Trader.

trader

A person who buys and sells securities with the goal of profiting from short-term price swings.

Trader.

Traders who are dealers or market makers select the securities in which they will specialize and provide quotes on those securities in the marketplace.

They commit their firm's capital by taking positions in those securities and are ready to buy and sell at the prices they quote.

Traders known as competitive or floor traders buy and sell securities for their own accounts. They don't pay commissions, so they can profit on small differences in price, but they must abide by the rules established by the exchange or market on which they trade.

The term trader also describes people who execute transactions at brokerage firms, asset management firms, and mutual fund companies.

References in classic literature ?
missis, missis," said Eliza, "there's been a trader talking with master in the parlor
The heaviest load on his mind, after his conversation with the trader, lay in the foreseen necessity of breaking to his wife the arrangement contemplated,--meeting the importunities and opposition which he knew he should have reason to encounter.
If anybody had ever said to me that I should sell Tom down south to one of those rascally traders, I should have said, `Is thy servant a dog, that he should do this thing?
You know your master never deals with those southern traders, and never means to sell any of his servants, as long as they behave well.
We will bring all defaulter traders in the trader meet and it depends on AJK administration whether they will bring all defaulter traders.
May 2, 2011 /PRNewswire/ -- OptionsU Forex Trader (OUFX) announced the release of the next version of the popular Forex trading software: Forex Trader Pro 2.
It's filled with recipes (past and present) for the restaurant's 100 most popular tropical cocktails (including the mai tai the Trader invented in 1944) and 35 island-style nibbles, both savory and sweet.
The target audience includes part time (42%), professional (42%) and institutional (16%) traders.
Perhaps one informed trader believes candidate A has a 90 percent chance of winning, and so bids shares of A up to 90 cents.
New Regional Options data offers trader the ability to price comparison shop for best bid and ask among the regional exchanges trading a particular stock.
A trader will buy and sell securities with such frequency and attention that the activity will rise to the level of a trade or business.
There are significant tax advantages to being classified as a trader.