Serving the Quantitative Finance Community
How do traders make money?
Approximately, how much do traders make? My guess would be a junior trader would start at total package of $100k and go up to $1M and up. I assume the comps are comparable betweeen fixed income and equity traders.
How do traders make money?
An intersting take on the subject of the thread .. I was under the impression that we were dicussing how a trader would make profit for his employer ...and by doing so enrich himself. You seem less concerned about that and more about what a trader gets paid. The answer to your question is that [ay consist of base + bonus. the former varies depending on the institution but is usuallly round the £100k mark. The latter really varies. Ideally you want to get 8-10% of what you make.
knowledge comes, wisdom lingers
How do traders make money?
QuoteThe answer to your question is that [ay consist of base + bonus. the former varies depending on the institution but is usuallly round the £100k mark. The latter really varies. Ideally you want to get 8-10% of what you make. According to your numbers it sounds like it is very comparable to a quant's comp. Nonetheless, traders take much more risk than quants. Would you agree?
How do traders make money?
pray tell me how a quant makes 10% of what he earns for the firm when he has no p+l ?
knowledge comes, wisdom lingers
How do traders make money?
Sorry for not being clear. What I meant was, a desk quant gets a bonus based on how that desk's traders do collectively. A trader's bonus depends only on his own book. So the later is riskier than the former. A trader's bonus has a much higher up-shot, but he or she doesn't enjoy the risk diversification that a quant enjoys. Do you agree?
How do traders make money?
Not really - I think in almost all cases bonses are dependent upon the profitability of 1. the bnk, 2. the department and finally 3. the trader. In a bad year, even profitable traders get shafted
knowledge comes, wisdom lingers
How do traders make money?
Some banks have benchmarks where say each trader headcount is expected to contirubute at least Eur1.5-2mio of trading P&L. And daveangel is right in saying that the average bonus would roughly be around 10pct of what the trader makes... of course it also depends on a lot of other things but reckon this benchmark is quite generalise.
How do traders make money?
QuoteOriginally posted by: IcecloudSome banks have benchmarks where say each trader headcount is expected to contirubute at least Eur1.5-2mio of trading P&L. Are the P&L expectations the same for fixed income and equity traders? If not, your ballpark figure corresponds to which one?