Question

What is the difference between merchants and traders ?

Answer 1

a trader is someone who buys and sells financial instruments such as stocks, bonds and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. 

Traders are either professionals working in a financial institution or a corporation, or individual investors, or day traders. 

A merchant is a businessman who trades in commodities that he didn't produce himself, in order to earn a profit. 

Merchants can be of two types: 

1.A wholesale merchant operates in the chain between producer and retail merchant. Some wholesale merchants only organize the movement of goods rather than move the goods themselves. 

2.A retail merchant or retailer, sells commodities to consumers (including businesses). A shop owner is a retail merchant.

Answer 2

A trader is someone who buys and sells financial instrument such as stocks,bonds and derivatives.A merchant is a type of businessman who trades in commodities that he didn't produce himself,in order to earn a profit.