Final answer:
The two roles in trading are Prop Trader and Agency Trader. Prop Traders use the firm's money to earn profits while Agency Traders execute trades for clients, focusing on getting the best deals rather than firm profits.
Step-by-step explanation:
In trading, the two roles that can be adopted are Prop Trader versus Agency Trader. A Prop Trader, or proprietary trader, trades on behalf of the financial firm that employs them, using the firm's own money to seek direct gains. On the contrary, an Agency Trader executes trades on behalf of clients, and their primary objective is to get the best possible deal for their clients, not necessarily to make a profit for themselves or their firm. They earn commissions or fees for their services. These trading roles differ significantly in their objectives and approach to financial markets. A Prop Trader has the flexibility to take more risks, relying on their judgment and strategies to earn profits for their firm. An Agency Trader, however, is more focused on process and compliance, working to ensure that client orders are executed in line with their instructions and preferences.