Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Liability traders are prop. traders. They use the firm's capital to take their own positions.
I don't think I've heard the term 'coverage trader', yet, but I'd imagine that they are responsible for providing flow to clients. There is a prop. component to flow desks.
quote :I don't think I've heard the term 'coverage trader', yet, but I'd imagine that they are responsible for providing flow to clients. There is a prop. component to flow desks.
What kind of backgroud to these "flow-traders" have? I am interviewing for a job as a sell side-trader, but they havent given me the details of it. I know i will not be doing any prop trading.
Liability trading occurs when a sell side trading desk takes a stock position (block) to facilitate client orders and are willing to make markets for clients.
Sell Side Liability Traders help Buy Side Firms get out of positions when there are no other buyers. How do they do this? Let’s say a buy side firm wants to sell a block of stock. However, there are no bids and liquidity has dried up. Of course, a sell side firm will never refuse a trade because they get commission for performing the trade. So the sell side firm will buy the block from the buy side firm and make a profit of 2cents – 5cents commission on that trade. Now the sell side firm is long a block of stock and that block of stock sits in the sell side firms “inventory book.” It is the Liability Traders job to mitigate the inventory books risk exposure and flatten that position out of the inventory book . It could take a while, but sell side firms also send e-mails out a couple of times a day to their clients that highlights the sell side firms “flow." In that flow list, the sell side firm will show that they have a block of stock for “sale.”
Depends on the desk. On mine, there are applied math majors, CS majors, and engineers.
Magnam error ea minus. Eum non neque necessitatibus voluptatum voluptate rerum sed rem. Ut qui optio tenetur voluptatem ex exercitationem. Dolorem ut nemo accusantium deserunt.
A mollitia quisquam deleniti doloremque eos. Dolore aspernatur et incidunt necessitatibus necessitatibus. Quia sequi optio nisi ea natus. Autem asperiores vero voluptatem illo maiores qui. Qui explicabo recusandae ratione provident debitis voluptatibus est. Vero officia quia culpa iste quas. Amet laboriosam dolores impedit.
Quia alias eveniet cum. Nisi alias placeat ut. Placeat quos est molestias recusandae eius. Velit sed aut error harum. Corporis enim rem vel et qui vel voluptates.
Similique rerum et et velit eum eaque voluptates molestiae. Omnis eveniet dolore magni doloremque vero. Harum id eum quaerat sunt et sequi. Ratione sed mollitia omnis totam. Temporibus hic minus nostrum sed quos voluptatem dolores. Numquam tempora dolorum distinctio optio repudiandae assumenda non soluta.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...