Hi everyone,I was wondering what are the career options after 7-8 years of trading in derivatives? What is the appropriate time for moving into hedge funds? Do derivatives trades move into private equity later considering that the skill sets demanded are diametrically opposite? My limited understanding of the Investment banks tells me that a highly specialized trading role makes one unsuitable for different careers later...Can anyone please elaborate on the exit options available for traders...?ThanksVikas

Sounds like you're not currently employed trading derivatives in a bank so my guess is that it's a little premature to be thinking of an exit strategy. It's also a naive person who thinks what you plan for so far in advance is actually what will happen.

Whats naive in thinking abt exit options?

I don't think that it makes sense to think of getting out after 7-8 years, especially before you have really started.The job is a good one, so there is no real strong drive to stop. Each day, there is something new, and interesting. It takes a long time for most of us to reach a very senior level, too, and to be what could truly be called expert in our field. Once you get to that point, it would seem strange to jack it all in and head off into the sunset. For me, it would be a bit of a waste.

QuoteOriginally posted by: pgeekWhats naive in thinking abt exit options?The naiveity comes not in thinking of exit strategies, but in thinking that those strategies will actually be applicable. Think back 7-8 years; have things panned out as you expected back then? If yes, then I guess you're either an astronaut, a sports star or a train driver.

Regarding moving into Hedge Funds, it would depend on the type of derivative instruments you trade and the amount of proprietary trading skill and experience you have. Most options “traders” in investment banks are market makers and don’t separate their proprietary trading profits from their flow business and would be lost without it. If you trade exotic equity derivatives, which are retail products, then there is not much you can do for a hedge fund, whereas there are many large hedge funds that trade structured credit derivatives, for example. Reasons for leaving a bank might include getting sick of sales people.

it's kind of naive to think hedge funds will exist in anything like their present form in 7-8 years.