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Quantitative Finance · Glossary

What is Risk trader, execution trader?

Also known as: risk trader · execution trader

Definition 16.1 The Industry: Firms, Roles and Careers · Chapter 16 — Trader

A risk trader decides which positions the firm holds, within limits, and owns the profit and loss of a book. An execution trader carries out orders decided by someone else, a portfolio manager or a client, and is judged on the cost and quality of execution rather than on the position’s profit.

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