How does a proprietary trader differ from an agency broker?

• A. A proprietary trader acts as the principal in a deal whereas an agency broker acts on behalf of a client
• B. An agency broker works on a wide range of asset classes whereas a proprietary trader only focuses on one asset class
• C. A proprietary trader trades more frequently than an agency broker e.g. High Frequency Trading
• D. A proprietary trader does not take risk and always hedges positions

Answer: (A)