Traders buy and sell stock, currencies, bonds, cryptocurrencies and other financial assets to make a profit, usually dealing on behalf of, or for the benefit of, investment banks.
What does a trader do? Salaries | Typical employers | Qualifications and training | Skills
Financial traders use data and research to buy and sell financial assets on a short-term basis, balancing the risks involved against the potential for profit.
Typical duties include:
- researching prices and markets
- making plans for purchases and sales
- following news coverage for information about price changes
- gathering information from researchers, sales traders (traders who deal directly with clients) and other colleagues
- executing trades
- keeping notes and records
- collating reports.
Depending on the kind of work you do, you may also liaise directly with clients to understand their requirements and keep them updated on progress. You may also need to build and maintain professional relationships with new and existing clients, by presenting them with ideas that meet their requirements.
Trading offers high levels of responsibility, good promotional opportunities and impressive financial rewards including generous salaries and large bonuses. However, the hours are long and start early: research needs to be complete before financial markets open at 8.00am). The work can be stressful because high-impact decisions need to be made quickly.
Graduate salaries
According to Glassdoor, salaries for trainee or junior financial traders start at around £21,000 (you’ll likely receive a bonus on top of this). Both your salary and your bonus will rise with experience: the average salary for a financial trader is around £60,000.
Typical employers of traders
- Financial houses.
- Investment banks.
- Exchanges such as ICE Futures Europe.
- Treasury departments of major companies.
Vacancies are advertised by targetjobs and careers services. You’ll also find them advertised by financial recruitment agencies and specialist finance jobs boards.
Investment banks start recruitment very early in the academic year. Sector and company research, attending presentations, and networking are essential.
Qualifications and training required
You’ll need to be a graduate to enter this career. A degree (2.1) in any subject is required, though qualifications in economics, politics, business, financial or numerate subjects are often preferred.
This is a highly competitive field to enter so work experience will help your job applications stand out. Look for internships and vacation placements with investment banks, along with insight weeks and shorter-term events where you can meet recruiters.
Once you’re employed, you’ll need to complete further training before you can trade. Some will be on the job while some will be provided by external organisations. Employers will pay for your training, but working and studying at the same time can add to the stress of the job.
Key skills for traders
- Confidence.
- The ability to analyse data and make decisions quickly.
- Numerical skills.
- IT skills.
- Communication skills.
- An interest in financial markets.
- Analytical skills.
- Interpersonal skills.
- Teamworking skills.
Make sure to sign up to targetjobs to get all the benefits of our graduate job-hunting platform including tailored advice and job opportunities.
FAQs
What does a trader do all day? The typical day of a trader includes selling and trading stocks and securities. They work closely with clients to understand their finances, making trade recommendations and informing them of price fluctuations in the market.
What is a trade job description? ›
A trade job generally refers to any job whose duties require advanced training and skills gained through means other than a bachelor's degree. For example, many jobs in the construction industry, such as plumber or electrician, require you to have significant experience and training before you can work.
What is the job description of an options trader? ›
The key to options trading is risk management. Options traders study the markets and create forecasts to determine the best ways to minimize their clients' risks while maximizing profits. The advantage of working for a large brokerage firm is the opportunity for an annual bonus.
What is the description of trading? ›
What is trading and how does it work? Trading refers to the buying and selling of financial assets in markets with the aim of making a profit. It involves analysing market trends and identifying opportunities to enter the market, thereby making a profit.
What is the business description of a trader? ›
Technical and Market-Timing Information
This is to anticipate future price movements in assets such as stocks, bonds, futures, currencies, or commodities. Traders use technical analysis and other market-timing information to identify buying and selling opportunities.
What does the trader role do? ›
As the Trader you will turn your camp into a burgeoning business by sourcing materials for Cripps to produce into sellable goods. An investment of 15 Gold Bars to purchase a Butcher's Table will get your business up-and-running.
What is the job description of a trading agent? ›
Traders buy and sell stock, currencies, bonds, cryptocurrencies and other financial assets to make a profit, usually dealing on behalf of, or for the benefit of, investment banks.
What is the role of the stock options trader? ›
Traders take combinations of long and short option positions, with different strike prices and expiration dates, for the purpose of extracting profit from the option premiums with minimal risk.
What is trader short answer? ›
A trader is a person who gets involved in buying and selling of a financial asset in any financial market. He or she can buy or sell either for himself/herself or on behalf of another individual or institution.
What is the short description of trade? ›
Trade refers to the voluntary exchange of goods or services between economic actors. Since transactions are consensual, trade is generally considered to benefit both parties.
Trading Role & Trading Markets
Traders aim to create markets for buyers and sellers and advise clients on financial positions. A trader represents institutional investors when buying and selling securities and often trades with traders from other firms depending on the volume of stock at the time.
What do traders actually do? ›
Traders participate in financial markets by buying and selling stocks, futures, forex, and other securities, and by closing out positions with the intention of making small, frequent gains.
What is a trader responsible for? ›
As a trader you are responsible for making prices and performing trades in commodities, equities, bonds or foreign exchange. These trades are usually executed on behalf of investment banks.
What skills do you need to be a trader? ›
Six Essential Skills of Master Traders
- Skills #1 and #2 – Research and Analysis. ...
- Skill #3 – Adapting Your Market Analysis to Changing Market Conditions. ...
- Skill #4 – Staying in the Game. ...
- Skills #5 and #6 – Discipline and Patience. ...
- Bonus Skill #7 – Record Keeping. ...
- In the End. ...
- Related Readings.
The job of a trader consists of dealing with financial risks, especially buying and selling stocks, bonds or currencies. Particularly intense and effervescent, the trader's activity requires a constant reactivity in order not to miss anything of the market fluctuations.
