Traders are individuals who deal with the exchange of financial components such as bonds and stocks in commodity and stock markets. Based on the exact nature of trading that they carry out, there are several subtypes of traders such as floor traders, day traders and the most common, stock traders. Trader work is carried out by these professionals who manage the marketing and financial portfolios of clients by buying and selling stocks based on their financial goals.
Traders are employed by large financial corporations, small institutions or may work on their own as independent investors. Stock traders are often sought after by a number of clients, who are interested in trading based on the nature of the market. The traditional method of trading has always been carried out on a trading floor where stocks are bought or sold by negotiating prices and agreeing to a deal. This traditional method has been replaced by electronic trading in many markets around the world.
Functions
The chief job responsibilities of a trader greatly vary depending upon the specific type of trading carried out by them. Although, trading work has been associated with stock traders over the last few decades, there are other types of traders such as day traders who deal with stocks, currencies and other financial instruments and ensure the competition of all deals before the closing of the market on that day. A floor trader is a trader who uses the traditional means of floor trading to carry out their daily exchange of financial components.
Stock traders form the majority of all traders in the world of finance and trading. Their main objective is to maximize profits for their clients by placing purchase or selling orders of stocks in a stock exchange. They have to counsel the clients on the various opportunities available and risks associated with each of them. They are also required to fill necessary paper work at the time of the trading and after its completion. Selection of appropriate investment plans as per the customer's requirements is an important job task executed by stock traders.
Requirements
In order to be a trader, one must possess a bachelor's degree in finance, accounting, business or other related field. Many organizations prefer candidates with a master's degree in the same field. Subjects such as corporate finance, investment, international marketing and banking should be a part of the candidate's curriculum during graduation or post-graduation. A trading license, which is obtained by clearing an exam conducted by the National Association of Securities Dealers (NASD) is needed for any individual who wants to work as a trader. Also, most hiring financial institutions seek professionals with prior experience in trading.
Skills
Due to the nature of their job and frequent interaction with clients and customers, a trader must possess strong communication and interpersonal skills in order to carry out their work efficiently. They must have strong trading skills and knowledge about the varying marketing trends in order to predict uncertainties on a daily basis. Traders must have good problem solving and decision making skills as they are required to act quickly on a problem and work towards a possible solution for the same.
Work Conditions
Traders work in extremely chaotic conditions, which can be stressful for them. It is a fast paced job where even the slightest delay in carrying out a task could lead to major consequences. Some of them may be required to travel across various parts of the country on a regular basis to hold meetings and discussions with clients. They work for around 40 hours in a week, while some of them may also work during the weekends.
Earnings
The average earning of a trader working in a financial investment firm is between $85,000 and $105,000. Those dealing with securities and commodity contracts earn around $75,000. Due to the sales-related nature of the job, they also receive additional commission, which is based on the number of stocks and bonds sold by them.
Thus, trader work can be an exciting line of work for those looking to pursue their careers in this field. Although it is a stressful job, the lucrative salary packages and job opportunities make it a viable career option.