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The finance jobs available in trading encompass the buying and selling stocks, bonds and commodities. These trading professionals facilitate their client’s needs through monitoring and proactively responding to market movements. If this type of exciting and challenging work appeals to you, read on to learn about four of these potential jobs.
Buying and Selling Jobs
The most common type of trading position involves the buying or selling of equities and commodities. Most of these common jobs are found in investment banks, which encourage employees to focus on specializations. This means that a trader might only sell or buy securities, health care stocks or short-term Treasury bonds. Financial traders may in smaller banks may do may do all of these activities and also sell or buy fixed incomes and government bones. Some traders work in asset or investment management companies under the direction of portfolio managers. These traders usually are given specific instructions regarding buying and selling securities, such as only buying technology securities, but they are often allowed to choose when to execute a trade and at what price to buy or sell.
Financial Analyst
Financial analysts are responsible for providing trade market monitoring services and analysis support for capital market trading activities, according to the Bureau of Labor Statistics. They evaluate and report on the risk exposures of existing portfolios and projected trades. They recommend the appropriate risk limits and collateral statuses for each trade. The portfolios that they work with include banks, both small and international, and borrower institutions, such as credit unions, mortgage banks and insurance companies. They perform ongoing financial analysis that includes in-depth reviews of financial conditions, business strategies and risk exposures. They manage the trade risks of assigned portfolios by monitoring SEC filings, news releases, rating changes and market developments. They regularly prepare written financial presentations that support or oppose proposed trading recommendations.
Hedge Fund Trader
A hedge fund trader is a highly sought-after position because these jobs come with few limitations, so the best traders who manage their own portfolio may make tens of thousands of dollars. The most talented hedge fund traders are independent entrepreneurs who focus on future market movements. They work with financial analysts to monitor existing market conditions and coordinate hedge fund acquisitions with portfolio managers. They perform post-trade functions, such as confirmation and allocation with other traders. Hedge fund traders must be experts in portfolio research, construction, optimization and management. They are expected to have experience with both long and short equities.Most hedge fund traders have a master’s or doctoral degree in math, science or statistics.
Trading Managers
Trade managers work in trade advisory departments and assist subordinate trade advisors with client services. This includes preparing trade reports, planning documents, engagement agreements and account performance updates. These senior traders must have a firm understanding of portfolio theories, asset allocations and trade re-balancing techniques. Trade managers communicate with clients, attorneys, bankers and external custodians. They work with customer relationship management directors to provide satisfactory client engagement services such as strategy discussions and trade recommendations. They oversee the preparation of comprehensive portfolio assessments, which includes asset and investment analyses, for major clients.
Related Resource: 5 Resume Tips for Those with a Degree in Finance
Entry-level finance jobs available in trading usually require a bachelor or master’s degree in math, banking, accounting or investments. Job candidates must demonstrate experience with financial techniques, such as credit and liability analysis, and also knowledge of regulatory methodologies.
