difference between trader and dealer? (1 Viewer)

[velox]

Anyone know?

This was the dealers description:

http://www.careers.macquarie.com/jo...pand=1&lSkillTypeID=&stp=WEBSITE&sLanguage=en

 

[Affinity]

dealers are probably new and traders used

 

[velox]

Sorry affinity, you dont make much sense to me.

 

[§eraphim]

Dealers are essentially market makers making money off the bid-ask spread, and don't take positions for hedging and/or speculation.

Proprietary traders usually take hedging/speculative positions using the banks money.

 

[velox]

I guess it is easier to move from one role to another (out of the ones you listed) than to move divisions in an IB?

 

[turtleface]

I thought you had to be licenced to be a dealer. Like I remember in Finance 1 they told us there were only like 60 or so licensed FX dealers in Australia, with each bank (both commercial and Ibanks) having 1 or 2, and some independents.

I know the difference between dealers and brokers, but not traders. Maybe traders are just dedicated brokers acting for companies/themselves

 

[§eraphim]

brokers don't hold any "inventory". dealers do to make markets, while traders buy to speculate.

yeah, u need certified by AFMA or something. But I think we're just talking about the general terms.

 

[velox]

I.e. traders make heaps, dealing is a boring job, and broking is too much.

 

[seremify007]

I wonder if the definitions could be made clearer by prefixing "trader" and "dealer" with the word "FOREX"? On one hand is someone who tries to make gains purely by trading on the continuously changing value of currencies, whereas on the other hand, the dealer makes their money more by selling the currencies to everyday people who need to buy them.

*shrugs* That's my interpretation.

 

[Conspirocy]

i dunno about u guys but my dealer works out of a phonebox and we call him moey lol

 

[asdfzxh]

no such thing as borx or not or study or not, just u r boringx