InvestorWords.com

trader


Definitions (2)

1. One who buys and sells securities for his/her personal account, not on behalf of clients.

2. An investor who holds stocks and securities for a short period of time (a few minutes, hours or days). The goal is to profit from short-term gains in the market. The stock selection is generally based on technical analysis or charting which relate only to the stock price rather than a fundamental evaluation of the company as a business. The IRS offers some tax benefits to traders: they can deduct their interest expense without itemizing, and seminar costs can be deducted as well as home office expenses in connection with investing.

Featured Tip

American Options vs. European OptionsWhen choosing forex options, make sure you also look to see if they are American-style options or European style options. American-style options give the trader the ability to exercise his or her opti ... Read more


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