Market Makers

[smokey_mcPaat]

Originally posted by def
you really need to clarify what kind of market maker. equity, equity derivatives, credit derivatives, bonds, currencies, etc.

i believe on this board, MM comments typically refer to nasdaq trading. personally, i'd stay away from that as the game isn't what it was for the firms that took advantage of order flow now that stocks tick in penny increments. take a look at NITE stock as a good example of how the playing field has leveled.

however, if an i-bank is going to offer you a job as a market maker, i'd take it. it would be a great way to learn the markets with real potential.

as an example: the latest edition of FOW magazine did a salary survey (london) of the credit derivatives market.
the salary range for associates is: 55-100 pounds base + 150-300 pound bonus.
Managing Director: 120-170 pound base + 850-1.5 million pound bonus.

This is credit derivatives but it shows the potential of working at an institution. I would venture a guess that most prop traders don't come close to the associate or even analyst numbers (which i don't have available).

Comments regarding knowledge of order flow/manipulation are grossly exaggerated. Ditto on the comments on capital. [/QUOTE

someone want to do the calculation and put those salary #'s into dollars (too lazy to do it myself) thanks....

 

[trader99]

Originally posted by daniel_m
hang on 99, you forgot to mention you went to an Ivy League school...

Danny Boy!

Haven't heard from you in a while. But notice I did NOT say that this time around.

hehe.

-99

 

[NasdaqTrader]

Originally posted by freehouse
One of the best things about working for an I-bank is that you will meet a bunch of people who may help you in the future (i.e., the contacts).

Yeah sure,people that are probably laid off and also looking for work.As far as being a MM,it's a very stressful job,more than trading for yourself in my opinion.You have to constantly be there providing liquidity in a bunch of stocks.You're lucky to get a piss break.Trading for yourself provides much more freedom and is much less demanding.

 

[trader99]

Originally posted by NasdaqTrader


Yeah sure,people that are probably laid off and also looking for work.As far as being a MM,it's a very stressful job,more than trading for yourself in my opinion.You have to constantly be there providing liquidity in a bunch of stocks.You're lucky to get a piss break.Trading for yourself provides much more freedom and is much less demanding.

You know what's so funny?

It's the state of human affairs and thinking. So, it seems like a lot of prop traders think it would be cool to work as MM or in an institutional environment,etc.

Whereas for me coming from an institutional environment, I thought it would be so AWESEOME to be an independent prop trader and taking most of the profits. And yes, I love the freedom of prop trading, the hours, the bureacracy free nature,etc. But it has its ROUGH spots too - no salary, benefits, uncertainty,etc.

Everything has its pluses and minuses. Nothing is so clear cut.

Think before you leap to either side of the fences.

- 99

 

[traderman]

Originally posted by NasdaqTrader


Yeah sure,people that are probably laid off and also looking for work.As far as being a MM,it's a very stressful job,more than trading for yourself in my opinion.You have to constantly be there providing liquidity in a bunch of stocks.You're lucky to get a piss break.Trading for yourself provides much more freedom and is much less demanding.

You know that's very true. I can only imagine how stressful it must be making sure that you provide an "active" market in the stocks/sector you trade. But does it really come to the point, traders don't have time to eat let alone use the bathrooms?? (i guess that's what they have traders' assistants for!)

 

[def]

no, things are much better these days - we all have buckets under our desks.