Base Salary + Payout

What is the difference between a Market Maker (at some the investment banks) and a prop. trader (at the various shops)?

It seems that prop. trading are more like day trading firms, and may not hold overnight positions? Also in terms of pay, MM get base + bonus, whereas prop. traders are purely commission based?

Do they both use essentially the same types of skill sets? Which one is more popular (ie., what are the exit opportunities for a MM?) can they eventually become prop. traders (or vice versa)?
 
MM's have an "obligation" to trade, Props have a right but no obligation. That is all in THEORY. Usually MMs get salary plus lower percentage payout while props get high payout no salary.
 
I agree, but do MM and Prop. traders basically have the same skill set? I mean, i can't see MM focusing on charting and technicals as much as prop. traders? (or maybe i have a different view of prop. trading?)
 
Market makers are middle men that make money from order flow that they get from brokerage firms. They are the ones who create the bid and ask on the Nasdaq
 
Originally posted by Newatthis
MM's have an "obligation" to trade, Props have a right but no obligation. That is all in THEORY. Usually MMs get salary plus lower percentage payout while props get high payout no salary.
More...

Just a lil correction. Most MM do NOT in general get a payout % of revenues. Maybe a few very very senior MM do.

Only prop traders(a smaller, selective group) on Wall St actually gets a payout. And the payout is significantly smaller then the prop trading shops that are discussed on this board. But then again they get guaranteed six figure base salary min(from 120-350K).
 
It seems that we agree on several major points about the overall state of the markets, employment, etc. (judging by the last couple of exchanges)....but I really want to ask again (not to bug you) about some direct sources for these positions (personnel dept's at certain firms or "head hunters" - or trade journals, etc.). I don't doubt the authenticity of your posts, I am just curious why I have not seen such information in the last couple of years.

Job titles are a bit vague, but I assume that there are more details printed somewhere, for candidates to look at.

If you can, just point me in the right direction and I'll see what's out there. As I said before, this is a good gauge of the Global condition of the markets (who is hiring whom, for how much, and to do what...is valuable).

Thanks again....


Don
 
It sounds like prop. trading firms are more rigorous in the daily trading tasks than market makers ... so why then, do the large banks only recruit from IVY's and other top institutions if their they are simply "middle men" ...

I'm just trying to get a better understanding of their job functions ... if i'm faced with two opportunities (one MM position - probably Trading Assistant, then actual Trader ... and one prop. trading - will probably trade within a week or so.)

Which is a better opportunity (near-term and long-term)?
 
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