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frolloos
Topic Author
Posts: 1573
Joined: September 27th, 2007, 5:29 pm
Location: Netherlands

prop trader

December 28th, 2007, 9:25 pm

are prop traders really mythical beings/uber-traders? what does it take to land (or be asked) a job at a prop desk?cheers, FR
 
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AndyNguyen
Posts: 166
Joined: December 10th, 2007, 4:08 am

prop trader

December 30th, 2007, 4:37 pm

just like other traders, their job is to deliver alpha. And they play with the firm capitalThe myth may come from the fact that prop desk is very tight lipped about their strategies, etcThey work separately from other desks, etc...I work at one. To get a job there, you gotta be at the right place, right time. And have the right skills
 
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Martinghoul
Posts: 3255
Joined: July 18th, 2006, 5:49 am

prop trader

December 31st, 2007, 12:56 pm

Uber as compared to whom? Flow desk traders? Hedge fund traders?
 
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frolloos
Topic Author
Posts: 1573
Joined: September 27th, 2007, 5:29 pm
Location: Netherlands

prop trader

December 31st, 2007, 3:34 pm

as compared to flow traders. i suppose the myth comes, as CDQN wrote, from the secrecy around their strategies. but most strategies are variations on a finite number of basic known strategies. so i suppose what makes a prop desk especially interesting is the amount of risk you're allowed to take. i don't know, i'm not a trader, just a derivatives portfolio manager.
 
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player
Posts: 2290
Joined: August 5th, 2002, 10:00 am

prop trader

January 4th, 2008, 9:03 am

To get a job there, you gotta be at the right place, right time. And have the right skillsSo true!
 
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roulette01
Posts: 3
Joined: October 30th, 2007, 6:46 pm

prop trader

January 4th, 2008, 6:31 pm

i agree. i work on a prop desk and you just have to be in the right place and right time and go from there.
 
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meteor
Posts: 321
Joined: September 22nd, 2004, 5:20 pm

prop trader

January 4th, 2008, 6:53 pm

just out of curiosity: what is the average size of prop trader book. Or more generally what is the AUM at a prop desk.I am asking that as I am wondering if there is a real big difference between trading in a prop desk or in a hedge fund (at the end of they they are both buy side).
Last edited by meteor on January 3rd, 2008, 11:00 pm, edited 1 time in total.
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

prop trader

January 4th, 2008, 9:07 pm

QuoteOriginally posted by: playerTo get a job there, you gotta be at the right place, right time. And have the right skillsSo true!Still *waiting* for your dream to come true, player?
 
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donyoshi
Posts: 138
Joined: February 18th, 2004, 8:26 am

prop trader

January 4th, 2008, 9:21 pm

QuoteOriginally posted by: meteorjust out of curiosity: what is the average size of prop trader book. Or more generally what is the AUM at a prop desk.I am asking that as I am wondering if there is a real big difference between trading in a prop desk or in a hedge fund (at the end of they they are both buy side).unlike hedge funds who manage external assets and therefore manage AUM, prop desks have capital allocated to them usually in the form of limits. so usually they manage their books against var (or other risk limits), but could also be position, concentration etc. therefore HFs are looking to generate a [positive] return on assets, while a prop desk cares about generating profits above funding and risk capital costs.since as a HF you usually have more capital then you need for the strategy (ie you rarely run at the limits of leverage) while at a prop desk you need to manage as capital efficent as possible (as capital costs) position sizing and trade implementation is quite different. i\ve seen a lot of prop traders struggle with this when trying to transition into managing client assets.
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