Who is a trader in the context of financial markets?

In the context of financial markets, a trader is someone who is actively involved in buying and selling securities. This role is essential to market operations, as traders execute trades on behalf of themselves or on behalf of clients, contributing to market liquidity and price discovery. Traders analyze market conditions, trends, and price movements to make informed decisions about when to execute trades, whether they are short-term or long-term in nature.

The focus on buying and selling securities captures the core function of trading, which is to make profits from market fluctuations. The activity can take place across various asset classes, such as stocks, bonds, commodities, and derivatives, making the trader an integral part of financial markets.

Other roles, such as providing advisory services, managing risks, or executing trades without supervision, do not capture the fundamental definition of a trader. While advisory roles involve giving recommendations based on market analysis, and risk managers assess potential trade impacts, these positions do not involve the direct buying and selling of securities, which is the primary responsibility of a trader.