Exit Option as Trader?
Lay-off frequently happen on Wall Street.
For many traders, especially fixed income traders, your skill is pretty niche. What will you do if you can’t find a seat elsewhere?
Equities people can trade their own money. But what about fixed income people? Will you try to start your own fixed income fund or switch industry?
there are zero exit options for layed off traders....this is a high risk / high reward career.
however, you can trade rates in a retail account with Futures contracts. Outright direction, curve, fly...can all be done just the same as at a large firm.
However, you can't trade credit in a retail account...there is no retail marketplace for that.
It can be very ugly as a trader who get laid off in their mid 30s or 40s. But interestingly, many firms prefer to layoff these people since they are more expensive and less energetic compare to juniors.
Work in trading, you should always think if I get laid off and couldn’t get another trading job, what can I do?
traders in 30's-40's are not laid off because they are expensive....they are laid off because they are not rockstars. If your individual talents are making your firm 50mm/year...your job is safe. If you are making 5-10mm/year, your job is not safe. Remember that traders P&L pays the salary of not just themselves, but sales, research, tech, operations, back office, middle office, the physical real estate, management, and various other costs. If you are 35 years old and not making 40mm/year...the bank will fire you to make room for the next generation.
bump
Hey! Ask Jeff Clark about it.
Agreed! Very skilled trader
Robinhood
Loo
Move around internally at your bank pre-layoff. You usually know if you are "in the hot seat" don't get caught flat footed. If you are in that boat, bring it up with your boss about moving into a non-trading seat (sales, platform sales, risk, etc.) Skate to where the puck is going, not where it's at. Figure out if that puck is going toward "lay-off" (Read: flat/lower P&L multiple years, bad culture fit, your bank is going under, etc)
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