Does "star" trader always mean highest PnL in BB S&T
To be clear, I am talking about BB S&T specifically.
As a naive college student just a few years ago, I've always thought highest pnl must mean that BB trader is doing great. But soon learned that BB's mainly do market making and do prop stuff under the guise of hedging. The question is, if someone is labeled a "star" trader does that necessarily mean they made the most PnL or just really good at bringing in business and making quotes for clients.
I think it depends on the individual. Each person wants to maximise revenue attributable to them.
If you're head of a desk, bringing in more clients/commissions by offering them some good service is a better deal than taking on a lot of prop risk to generate the same revenue. If the markets implode then your desk still does well and you still get paid. Banks typically also prefer these kinds of businesses.
On the other hand, if you're a trader responsible for making markets in something, then the only way you can increase attributable pnl to you might be to take some risk. So in those cases, you'd need to have a big pnl through risk taking to get a big bonus and be labelled a superstar trader.
The nice thing about working at a bank from what I've gathered is you have a few choices as to how to generate pnl, and you aren't limited to deploying risk in the market.
monkey_wso_2019:
WSO isn't letting me see your comment but I got an email and saw your comment. I got the question after reading this thread: https://www.wallstreetoasis.com/forums/ex-bank-trader-now-running-crypt…. Do you think most people called star traders are just great franchise employees?
Specifically this part:
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