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What does a Trader do?

Learn all about Trader duties, skills and much more. Get expert advice on how to become a Trader.

Photo of Brenna Goyette
Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 3 min read

An Trader is a person who buys and sells stocks and other securities.

Trader job duties include:

  • Research and analyze economic trends, government policies, industry developments, and other factors that affect the price of commodities
  • Monitor news reports and read industry publications to stay abreast of market conditions
  • Develop and maintain relationships with key market participants, such as producers, processors, and other traders
  • Identify opportunities to buy or sell commodities based on market analysis
  • Negotiate prices with counterparties and execute trades
  • Manage risk by hedging positions in the futures market or by taking physical positions in the cash market
  • Keep detailed records of all trading activity, including prices, volumes, dates, and counterparties
  • Prepare daily, weekly, and monthly reports for superiors detailing trading activity and positions
  • Adhere to exchange rules and regulations governing trading activity
  • Comply with internal company policies and procedures

Trader Job Requirements

There are no formal education requirements for becoming a trader, although most traders have at least a bachelor's degree. Some firms may require certification, such as the Financial Industry Regulatory Authority (FINRA) Series 7 and Series 63 exams. Traders typically have several years of experience working in the securities industry before being promoted to a trading position.

Trader Skills

  • Analytical
  • Research
  • Strategic
  • Critical Thinking
  • Excel
  • VBA
  • Access
  • SQL
  • Python
  • R
  • MATLAB

Related: Top Trader Skills: Definition and Examples

How to become a Trader

There are many different types of traders, but in general, a trader is someone who buys and sells assets in order to make a profit. Traders can work in a variety of settings, including banks, hedge funds, and investment firms. In order to become a trader, one must first have a strong understanding of the markets and the ability to read financial statements. It is also important to be able to think quickly and make decisions under pressure. Many traders start their careers as interns or entry-level employees and work their way up the ladder.

Related: Trader Resume Example

Related: Trader Interview Questions (With Example Answers)