Q&A: Gas Scheduler to Gas Trader

"MaritimeMonkey"

Any recommended reading for those looking to get an overview of the NG market, it's pricing dynamics, product flows, etc.? Thanks in advance!

I know a lot will hate me saying this, but no.

In terms of trading strategies--sure.

However, NG related, at least physically nothing replaces knowing what's happening on the pipes you handle.

"Iloveoptions"

How does physical trading compensation compare versus BB Investment Banking in the first few years out of school? Is it possible to land sophomore and junior summer internships at the large physical shops(Cargill,Glencore,etc)?

Thank you for doing this.

Physical trading comp. will be at an 2nd year analyst-Vp range depending on exp. So think along the lines of $90-250 for base. Bonus at Ib I belive is 50-100% base, in trading usually their is Corp bonus and book bonus( percentage of PnL)

Corp bonus for traders is as low as 10%, as high as 30% of base. Book is 2-12% of PnL. My book goes up 1% each year till 8%, and I handle a small AMA group ($5-7 mil) which will increase as I get more experience.

I'll use my salary as as reference. My shop is real new, so it's weak in relation. I make between 100-105 base. My bonus is on track for 18% of my base, and if I generate $500k in profit, I make 10k. If I do all those I can make about 130k year 1 at this small shop.

The big boys at Vitol, Cargill can see $100m + books with $200k bases, and some extremes at 10% PnL.

As for internships. Get a Quant degree at an ivy, and there's your chance. Very hard otherwise. Know of a fellow who did Economics at Harvard, interned at Glencore for two summers and traded full time since graduation.