A trader is a person who buys and sells financial assets in any financial market, either for themselves or on behalf of another person or entity. The fundamental distinction between a trader and an investor is the length of time the person keeps the asset. Investors typically have a longer time horizon, but traders typically keep assets for shorter periods of time in order to capitalise on short-term trends. A trader can work for a financial institution, where they trade with the company's money and credit and are paid a salary and bonus. Alternatively, a trader might work for themselves, which means they trade with their own money and credit and keep 100% of the profit. Many large financial organisations have trading rooms where traders, who are employees, purchase and sell a variety of products on the company's behalf. Each trader is given a limit on the size of a position they can take, the maximum maturity of the position, and the amount of a mark-to-market loss they can have before a position must be closed out.

Multiple Contributors

4K resources

0

1

0

Like