Dealer

A dealer is an individual or firm that buys and sells securities, commodities, or other financial instruments for their own account, at their own risk, rather than acting on behalf of clients. Dealers make money by taking advantage of the spread between the buying and selling prices. They provide liquidity to markets by being ready to buy or sell assets at any time, playing a key role in ensuring market efficiency.

Example

A bond dealer purchases bonds from the market at a lower price and sells them at a higher price, profiting from the difference in price.