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 periodicals archive ?
Not only is it important for traders to identify opportune times for entering and exiting the market, but understanding how forex timing works can also provide traders with useful frameworks within which to build a profitable trading strategy.
Traders from both sides of divided Jammu and Kashmir will meet at around 11.
A time-honored Trader Vic's appetizer salad, reinvented as finger food.
In another experiment, Plott and Sunder gave the inside traders less-complete information.
This is particularly useful for traders with multiple monitors as it allows them to move specific windows into any of their monitors.
Because the active trader is conducting a trade or business, presumably the profits generated would be subject to self-employment (SE) tax.
An additional advantage for a trader is being able to make a section 475(f) "mark-to-market" election.
Robertson argues that, ultimately, women traders can improve their situation only through collective action that compels policy makers to institute loan schemes, stop police harassment, and provide low-cost selling spaces with security of tenure.
So, as a day trader, Jones initially found the best of both worlds: a new sense of freedom as well as fast money.
As another young trader responded when pressed to give a moral justification for his career:
Ferguson was one of about 50 customers armed with shopping carts, primed to attack the pristine new aisles lined with foods for which Trader Joe's is known - fresh Atlantic salmon fillets, dried wild blueberries and Tahitian vanilla extract.
Under existing case law, the typical day trader should be considered a trader or an investor and, thus, should receive capital gain or loss treatment on securities transactions.