Trader Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Trader, written in plain English, along with examples of how it is used.

What is Trader?

a person whose business or occupation is to buy goods or services and sell the same at a profit. A trader is also known as a merchant and he can be dealing in anything from property, merchandise, stock market shares etc and who sells it at a margin, irrespective of the quantity he sells. A person making an investment is not a trader.

History and Meaning of Trader

The term "trader" comes from the Middle English word "trade," which means "path" or "track." At one point, traders were simply people who traveled along trade routes, bringing goods from one place to another. Over time, however, the word has evolved to refer to anyone who buys and sells goods or services for a living. Today, traders can work in a variety of industries, from the stock market to real estate to antique sales.

Examples of Trader

  1. John is a trader who specializes in rare coins. He buys and sells coins from all over the world, hoping to make a profit on each sale.
  2. Mary is a stock trader who works for a large investment firm. Her job is to buy and sell shares of various companies in order to maximize her clients' profits.
  3. Carlos is a property trader who buys distressed properties and flips them for a profit.
  4. Rachel is a small business owner who considers herself a trader. She buys supplies and materials at a low price and sells her finished products for a profit.

Legal Terms Similar to Trader

  1. Merchant: Similar to a trader, a merchant is someone who buys and sells goods for a living. However, the word "merchant" often implies a person who owns a physical store or storefront.
  2. Broker: A broker is someone who acts as an intermediary between buyers and sellers. In the context of the stock market, for example, a broker would execute buy and sell orders on behalf of clients.
  3. Dealer: Like a trader, a dealer buys and sells goods or securities. However, the term "dealer" is often used in the context of securities underwriting or investment banking.