NYMEX floor clerk
- Thread starter mayes6b
- Start date
Both.
That is, a good way to get your foot in the door for a position that will go nowhere.
That is, a good way to get your foot in the door for a position that will go nowhere.
After disbelieving the "floor will be extinct in 3 years" mantra for the past 15 years, I do now, tend to believe that the days are numbered for 2 main reasons.
The exchanges are now public companies -not as beholden to the old boy's club as 3 years ago.
One day, a firm with deep pockets will create the killer app for option spreads, intr/inter markets whcih will totally eliminate the remaining reason for the floor.
The exchanges are now public companies -not as beholden to the old boy's club as 3 years ago.
One day, a firm with deep pockets will create the killer app for option spreads, intr/inter markets whcih will totally eliminate the remaining reason for the floor.
If you can clerk at a nymex option trading firm, run don't walk to that opportunity. There is a big diff between clerking for a local and hoping to get in the ring vs. joining an option mktmaking firm and learning options then getting in the ring.
Being a floor option mkt maker enables you to learn risk since floor traders are almost always opposite of paper so they need to constantly rebalance the greek risks. Once you get a handle on the risk part, you need to be smart and humble enough to realize that you are prob not as good a trader as you think you once were on the floor since being on the floor "hides" trader's deficiencies due to structural advantages of being on the floor .
I am speaking from experience.
Being a floor option mkt maker enables you to learn risk since floor traders are almost always opposite of paper so they need to constantly rebalance the greek risks. Once you get a handle on the risk part, you need to be smart and humble enough to realize that you are prob not as good a trader as you think you once were on the floor since being on the floor "hides" trader's deficiencies due to structural advantages of being on the floor .
I am speaking from experience.
For what it's worth, I've received numerous in the past few months from floor clerks that have lost/anticipate losing their jobs. Most have few, if any, skills that are transferable to an upstairs role, be it trading, risk, etc.
Having said that, as already mentioned, if you are going to do it, you want to get on with a group in options, better yet a group that is not only making markets on the floor, but in OTC (Clearport) products as well, as the floor guys that are going to survive are going to be the ones that successfully make the transition to making markets in OTC products. A few have already made this transition and are now doing more off the floor than on the floor.
Having said that, as already mentioned, if you are going to do it, you want to get on with a group in options, better yet a group that is not only making markets on the floor, but in OTC (Clearport) products as well, as the floor guys that are going to survive are going to be the ones that successfully make the transition to making markets in OTC products. A few have already made this transition and are now doing more off the floor than on the floor.