What is a Head Trader?

A head trader manages the trading functions of a financial institution.

How Does a Head Trader Work?

For example, if John Doe is the head trader at Company XYZ, he supervises the other traders, ensures that all the trades are compliant with local and federal regulations, and is responsible for ensuring that Company XYZ's trading department is making money for the company.

Why Does a Head Trader Matter?

Head traders have to be licensed, which means they have to pass at least one relevant exam administered by FINRA. There are several exams that can make a person eligible to become a head trader, and the correct one depends on the nature of the trading (i.e., commodities, municipal bonds, stocks, etc.). The most important thing to understand about head traders is that they are responsible for the actions of every other trader who works for them.

Ask an Expert about Head Trader

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Head Trader.

Be the first to ask a question

If you have a question about Head Trader, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users