What is the contribution of traders to society?

@nithin i donno if someone asked u this… n srry if sounds silly. but according to u, what is the role of a trader? is there any use of trader to the society? it seems like trdr isnt adding too much value. im always confused wht to say when some of my relatives ask me what do u traders do for society

They move the market.

And by doing so, they contribute a lot to the government through charges, and if they earn more than the exemption limit, they pay taxes.


Traders, Market makers, Middlemen, Arbitrageurs, etc are super critical in the functioning of the economy (including the stock markets). While it is hard to directly attribute the contribution to society, the economy or the capital markets wouldn’t exist if not for traders.

Here is a very interesting article on this topic.

The merchant, the middleman, the mancgere. Many people tend to think of him as a necessary evil, raising prices and exploiting nearly everyone. But this is quite wrong, and is wrong in a way so fundamental that it makes one wonder why most people seem to have no conception of how real economics works.

The fact is that middlemen are the means by which markets become “perfect” or, at least, approach perfection, where perfection means a single price and reliable quality. Arbitrage is the discipline that reduces differences in price, providing accurate signals on relative scarcity and engendering enormous flows of resources and labor towards their highest-valued use.


A trader adds liquidity to the system. Without a trader, an investor won’t be able to cash out his a.holdings instantly when he needs money. He may be left waiting for days, weeks or even years finding buyers for his assets until some other long term investor thinks that those assets are worth buying.

True that.

So all investors should respect traders :grin:

Of course, if no one is buying, traders cant trade too, so it is mutual :grin:

We traders also pay lot of taxes to the govt whether we make profit or loss in our trades. Also when we make profit we pay income tax. :sweat_smile:

We are the mysterious Mr Market :grinning:

That is a stretch. We haven’t reached such position yet, and I don’t think we will ever reach, until we can move the market.

Even if we are dealing with mid to high 9 digit figures, we are not Mr. Market.

And if we have women in our lives, I am sure we will not have such figures invested in the market - Mrs. Market will not agree to that :grin:

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Mr Market is the hive. We are part of it. Some contribute more some very less :wink:

Then we all are working bees, where is the queen :honeybee:

Is profit the queen :thinking:

Are you saying, I should join the above 2 sentences? :grin:

It works both ways. When an investor wants to buy at lows, there is a short seller and vice versa

Yeahhh. Otherwise how would investors make money. Huge respect. :rofl:

Ultimately it’s a zero sum game.

Traders please don’t get offended. I am just saying this on a lighter note. :grimacing::grimacing:

But you are certainly offending women here.

The only one I know here. I hope you don’t mind me tagging you here. @neha1101


All the participants make the market, so credit to all of us.

Credit also to the people who know nothing about the market and become :fishing_pole_and_fish: :face_in_clouds:

Aren’t you an FnO trader :grin:

Women who have no market knowledge may think of other investing venues, so may not agree to their men putting mid to high 9 figures in the market was my line :roll_eyes:

But it’s a fact. There’s always a trader to buy from investor at tops hoping for small peanut gains. Similarly there’s always a shorter ready to sell at bottom to an investor

Not really. I use FnO for hedging purposes. All my FNO trades are fundamental driven.

So depends on the definition of a trader. according to me I am not one.

Yes, scalpers. Spending lives, making peanuts :grin:

Like me. Although I am gradually turning into a swing trader

As per one definition, traders are short term investors and investors are long term traders.

So you must be selling your hedged positions too after a while, so occasionally may be you fall into our category :grin: