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Trader (finance)

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In finance, a trader is someone who buys and sells financial instruments such as stocks, bonds and derivatives. It is important to understand that a broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them.


Traders are either professionals working in a financial institution or a corporation, or individual investors, or day traders. They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, these may include:

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