Trader

A trader is an individual or organization that buys and sells goods or financial instruments to earn a profit. Traders operate in markets ranging from commodities and currencies to securities and derivatives. Their activities contribute to liquidity, price discovery, and risk transfer across the economy.

In the goods market, traders can be wholesalers, retailers, brokers, or import–export specialists who source products from producers and sell to customers or other traders. They may focus on specific goods, regions, or stages of the supply chain. Historically, traders linked distant economies along major routes; today they navigate global trade rules and standards, including quality controls, tariffs, and regulatory compliance.

In financial markets, traders execute orders to buy or sell financial instruments. Subtypes include day traders who close positions within a day, swing traders who hold for days or weeks, and longer-term position traders. More automated forms use algorithms and high-frequency trading. Common strategies involve momentum, arbitrage, market making, and hedging; all carry market, leverage, and execution risks, which are managed through position sizing, risk limits, and diversification.

Traders differ from investors by typically seeking shorter holding periods and higher turnover, and from brokers who facilitate transactions. Careers often combine study in finance, economics, or business with practical training and adherence to regulatory requirements and risk controls. The role is shaped by technology, globalization, and evolving market structures, with ongoing emphasis on ethics, transparency, and compliance.