What is the primary responsibility of a sales trader?

Study for the Financial Information Associate Certificate Test with comprehensive questions, hints, and explanations. Prepare effectively and boost your confidence for the exam!

The primary responsibility of a sales trader involves executing trades based on client orders. This role acts as a liaison between the clients and the market, ensuring that client orders are filled efficiently and at optimal prices. Sales traders leverage their understanding of the market and relationships with various stakeholders to facilitate trades on behalf of their clients.

Identifying market trends and providing insights is certainly important, but it typically falls under the purview of research analysts or market strategists rather than being the main focus of a sales trader. While managing risks associated with trades and settling trades post-execution are crucial components of the trading process, they are more aligned with the activities of risk managers and operations teams, respectively. Essentially, the execution of trades based on client orders stands out as the defining responsibility of a sales trader in the trading landscape.

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