What Is A Trader?

A trader is someone who makes their living trading assets on the financial markets. Some of the most commonly traded assets are:

  • Equities
  • Bonds
  • Commodities
  • Derivatives

Traders can either work for themselves or as part of a bank or trading firm. Typically, traders hold assets for a short length of time (rarely more than a few days). Trading is one of the most profitable sections of a bank, but also the most risky. Many of the large scandals have been due to "rogue" traders.

The essential skills for a trader are:

  • Calm under pressure
  • Quick, numerical thinker
  • Understanding of the markets
  • Risk taker (within reason)

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