Which traders are the ones that get the $50 million bonuses?

Traders are the ones who get some ridiculous bonuses. It would be very interesting to know which types of traders are the ones getting this kind of money.

Is it the commodities guys that deal in petroleum, energy, etc...?

 

I know commodities traders make enormous amounts of money. I'm sure in the future, with the whole fiasco about ethanol, agriculture traders will start to make a ton of money as well.

 

It's not like there are specific positions that routinely recieve $50M bonuses. Many of the best prop desk traders at ibanks get paid a % of the money they earn for the firm. Thus, the few traders who get $50m bonuses, probably earned the firm 10x that in trading profits over the year. Over the past couple years, commodities traders just happened to do the best, thanks to the high volatility in the commodities markets. Banks are now being forced to reward traders with a % of the money they earn in order to keep them from jumping to hedge funds.

 

Prop traders are the ones who make the big money.

Keep in mind though that prop trading isn't a role that you can just jump into. Usually a bank will handpick only the very best traders to work on the prop desks.

In reality it's not as cut and dry as that, but that's the general idea.

 

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