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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A person who buys and sells securities with the goal of profiting from short-term price swings.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Market trader Wayne Bellows has been banned from shouting about his wares by the council after complaints about the noise.
Black market traders expected that US exchange rate might reach 20 SDG within two weeks.
For more information on this event or Market Traders Institute, contact us by email at
As market traders we do not work for the council they work for us converting our rents in to meaningful events and advertising in which they fail miserably.
He said: "When any market traders come in they want to maximise their potential.
WANNABE market traders are being asked whether they've got what it takes to succeed behind a stall.
Previously East, a 39-year-old market trader from Sidcup, Kent, claimed the money was given to him by dad Albert from an inheritance.
Market trader Dennis Morgan said: "It's hard to get into town.
The leading financial education provider, Market Trader Institute, will offer a free and exclusive Forex trading event this Thursday on how you could maximize your trades for higher returns potential.
KICK IN THE TEETH Quayside market trader Joanna Jackson
One regular market trader told me: 'We have been really cross and had to do something about it.
Fellow market trader Dave Webb said Carmarthen was at risk from the same thinking that had ruined the market in Bridgend and threatened others.