I’m reading over my banks trading policy and there is a part of it that says every security has a 30 day holding period. Unless I’m reading this wrong this would much mean I can’t daytrade anymore which sucks. There also seems to be preclearance rules for certain stocks. This is all at a BB btw. For those who like to buy and sell stonks, are you able to with your banks policies? Am I reading into these holding period and preclearance rules incorrectly?
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Of course you can't daytrade as an investment banker.
In corp banking. Wouldn’t have the time if I was in IB
Being unable to to daytrade is fairly standard.
Banks range from only allowing you to invest in index funds / ETFs to requiring pre-clearance for individual securities
Holding periods range from 15-30 days depending on the bank.
Yet again, another stupid kid asking a basic questions who probably has an offer. Where are all the actual smart kids in IB????
Probably getting some sloppy head from your mom. Also what do you mean "probably"? The post very obviously implies i work there, smart guy
You can access employee investment rules without working in banking. They may not have taught you this in class or you may not know about insider trading or what it is, but while working in I-Banking, you are exposed to privileged information. There is adivison between public and private information within a firm and depending on what side you are on, the government will regulate you as you deal with securities.
You might wanna take a look at these videos/articles:
https://www.investopedia.com/terms/c/chinesewall.asp
https://slideplayer.com/slide/13006123/
Trading stocks while working in I-banking or Corp-Banking as you mentioned is literally insider trading as you COULD be using privileged information. There is a reason why you need to take Series exams and memorize line after line of Regs.
If you have positions you are forced to liquidate or move them to the BB's broker. Generally, you can buy ETF's like SPY but you cannot buy ETF's of specific sectors if you cover that sector.
btw, please do not ask these kind of questions to your associate or VP. Maybe to HR/Recruiter and your analyst mentor/buddy.
lot of people did during covid with options
Speaking from an AM perspective: FUCK NO! We have pre-clearance requirements for everything short of cash accounts (MM, etc.) and a minimum 60 day holding period on anything. There are also restricted lists if any fund at the firm is trading on something, and options and shorts are strictly verboten.
oooh verboten - fancy words! :P
Ich habe nicht nur hubsch worter.
Can traders day trade at hedge funds?
Sucks so bad cos day trading is so rewarding and instantly gratifying.
Very unlikely. Any trading firm is going to be under a lot of regulations that require preclearance-it's not (always) the company doing it for fun. That's why you make sure you work for a fund that does a lot of that fun day trading :)
When I worked at a hedge fund, we had a 6 month holding period on any investment - if I bought SPY I had to sit on it for 6 months, no exceptions. We also had a pretty broad restricted list. Moved over to PE, and now have no holding requirement but still have to pre-clear single-name trades
NO
Nice Try Billy Tsai
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