A trader is an individual or entity that buys and sells financial instruments such as stocks, commodities, currencies, or derivatives—with the goal of making a profit from price movements. Traders can operate independently, for financial institutions, or within brokerage firms. They analyze market data, trends, and economic indicators to make short- or long-term decisions about when to enter or exit trades. There are various types of traders, including day traders, who close all positions within a single trading day; swing traders, who hold positions for several days or weeks; and institutional traders, who execute large transactions on behalf of organizations. Successful trading requires knowledge of market mechanics, risk management, and disciplined strategies.