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A trader is person or entity, in finance, who buys and sells financial instruments such as stocks, bonds, commodities, derivatives, and mutual funds in the capacity of agent, hedger, arbitrageur, or speculator.

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Duties and typesEdit

Traders are professionals (institutional) working in a financial institution or a corporation. 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:

IncomeEdit

According to the Wall Street Journal in 2004, a managing director convertible bond trader was earning between $700,000 and $900,000 on average.[1]

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