The stock exchange is an institution of trade and finance and large sums of money are traded every day. At the base of the system are stock traders so that, despite the name Golden Boys, are true workaholics. The job of a trader also requires many intellectual qualities to be derived from certain types of training. But traders must also have some essential characteristics.

The job of a trader and peculiarities

The world of scholarship is a world that fascinates many people and the Golden Boys who work more. Called traders, these agents seem to be a profession attractive.

The roles and responsibilities of a trader

Key player in today’s economy, a trader’s main task is to manage the risks in the various trade that are at the international currency market. To do this, traders should make purchases and sales of securities on behalf of a bank, investment company or institution market. Their main task is thus to profit from these transactions and the anticipation and monitoring of international news that may cause fluctuations in the securities are part of their daily lives. Buy at the lowest price and sell at the highest is their goal. In addition, they sometimes have to manage large amounts of around a few million every day.


Trader, a business risk

While many people dream of becoming a trader, very few know the risks of this profession. The realization of a profit is indeed subject to certain parameters, also called risk and a good trader needs to know in order to manage them speculate. These risks are classified into five categories according to types of products processed. Thus, we find:

credit risks
rate risks
risk activities
The risks of raw materials
And risks related to the variation of the different exchange rates.

Credit risks are related to the disability of a company or country to settle its debts while interest rate risks relate to fluctuations in interest rates that central banks decide. The risks of actions, in turn, from the activities of a company. The risks of raw materials depend on the price change for various inputs. Finally, the most significant risks relate to the variation of the different exchange rates and are evaluated daily to nearly 2000 billion.

Access and evolution of the profession of trader

The job of a trader is a profession that is evolving and the procedures and criteria applied in recruiting a few decades are no longer exactly the same as those currently used.

How to access the business of trading?

Previously, access to the profession of trader depended primarily on characters of each person and such an approach is still used by some recruiters Anglo-Saxon, a good academic background is due by the majority of French companies. As a result, have an engineering degree from one of the largest institutions such as Central, X, Mines-Ponts or the various masters in mathematics, finance or economics added a third funding cycle is tremendous asset to enter the profession of trader. But personal qualities such as self-control and good responsiveness to pressure are also among important assets. Access to this profession is usually from a trainee position. Moreover, it is always best to start his career as soon as possible because this job is very stressful and a career lasts only about 20 years on average.

Following a career as a trader

Early in his career, pay a trader generally ranges from € 2,500 to just under € 6,000 gross per month and it depends mostly on the type of risk assigned to the trader. Thus, the function of market maker is often provided by a young novice trader. The latter has not to speculate as to just be limited to giving its customers the purchase price and the selling price that may apply. Traders of products called vanilla products in the jargon stock brokers are responsible to speculate.

This type of position does not always experience. Higher level of responsibility and with greater risks, the post trader of structured products is the logical evolution of a market maker or a trader vanilla products. Such a function is also synonymous with higher risks but in a way to become the obligatory prop trader or proprietary trader and finally receive a significant percentage of the gains. At retirement, a trader is most often converts businessman launching his investment funds.