What does trader mean?

Definition and examples A trader is somebody, a firm, or any entity that buys and sells financial instruments. The term may also refer to a person who buys and sells products, such as fruit, vegetables, sugar, or wool. For example, somebody who buys and sells cattle is a cattle trader. The term comes from the noun trade and verb to trade.

What does a stock trader do?

Stock traders can be professionals trading on behalf of a financial company or individuals trading on behalf of themselves. Stock traders participate in the financial markets in various ways. Individual traders, also called retail traders, often buy and sell securities through a brokerage or other agent.

What is an independent trader?

In recent years, thanks to technological advances, a new class of trader has emerged; the independent, or retail, trader. This type of private trader trades online using their own account and capital. The independent trader often specialises in one, or several, specific markets, with Forex being the most popular by far.

What are some examples of a trader?

In addition to individual operators, trading can also be done by financial institutions and companies. For example, banks may engage in currency exchange, while hedge funds may trade in a variety of financial instruments. What does being a trader mean?