Trading
We want to share with you how we live our dream to become financially independent.
Join us at our thrilling day-to-day adventure trip to freedom.
Please register with WordPress.com and follow our site!
Get new content delivered directly to your inbox.
Trading
A stock trader or equity trader or share trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur, speculator, or stockbroker. Such equity trading in large publicly traded companies may be through a stock exchange. Stock shares in smaller public companies may be bought and sold in over-the-counter (OTC) markets.
Stock traders can trade on their own account, called proprietary trading, or through an agent authorized to buy and sell on the owner’s behalf. Trading through an agent is usually through a stockbroker. Agents are paid a commission for performing the trade.
Proprietary trading (also “prop trading”) occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm’s own money, aka the nostro account, contrary to depositors’ money, in order to make a profit for itself.[1] Proprietary traders may use a variety of strategies such as index arbitrage, statistical arbitrage, merger arbitrage, fundamental analysis, volatility arbitrage, or global macro trading, much like a hedge fund.[2]