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  • That depends what you mean by traders.

    Prop traders can make money by (illegally) moving markets, or trading (illegally) off restricted knowledge.

    Sales traders can trade off customer flow and take margin.

    Market makers trade off liquidity and make money on spread.

    High Frequency Traders (or the desks that own the algorithms) make money from arbitraging (as do other more traditional arbitrage traders).

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