Route to Trading

I’m in need of some advice and perspective. I’ve been offered two roles and I’m torn between them.

On one hand, I’ve been offered a Market Risk Operations Analyst role at a large oil and gas company. It comes with a solid salary increase and would provide fantastic exposure to different markets, teams, and networks within a highly respected company. The experience and connections could be incredibly valuable for the long term.

However, I’m aware that making the jump from an operations role into a front-office trading position can be difficult, and the path isn’t always clearly defined.

On the other hand, I’ve also been offered a trading role at my current company. Technically, it’s an execution role, so not as strategic or decision-driven, but still closer to the action. That being said, the environment isn’t as ambitious or experienced as I’d like and I’m unsure how much I’d grow in terms of mentorship or long-term prospects.

I guess I’m trying to figure out: Do I take the market risk ops role, which offers stronger infrastructure, brand, and exposure – but potentially a longer or less certain path to trading? Or Do I stick with the execution trading role where I get “trading” experience now, but in a less inspiring environment?

5 Comments
 

Based on the most helpful WSO content, here’s how you might approach this decision:

  1. Market Risk Operations Analyst Role:

    • This role at a large oil and gas company offers strong infrastructure, exposure to diverse markets, and valuable networking opportunities. While transitioning from an operations role to a front-office trading position can be challenging, the brand and connections you build in a respected company could open doors in the long term. Additionally, market risk roles often provide face-time with front-office teams, which can be leveraged for networking and lateral moves into trading or other strategic roles. However, the path to trading from operations is less direct and may require additional effort or even further education (e.g., an MBA).
  2. Execution Trading Role:

    • Staying in your current company’s execution trading role gives you immediate proximity to trading. While it may not be as strategic or decision-driven, it still counts as trading experience, which is valuable for your resume. However, the lack of mentorship and an uninspiring environment could limit your growth and learning. If you feel the environment won’t push you to develop or provide meaningful long-term prospects, this could be a drawback.

Key Considerations:

  • Long-Term Goals: If your ultimate goal is to become a strategic trader, the execution role might give you a head start, but the market risk role could provide a stronger foundation and network for a more sustainable career trajectory.
  • Growth Potential: The market risk role offers exposure to experienced teams and a respected brand, which could enhance your learning and open doors to other opportunities. On the other hand, the execution role might limit your growth if the environment lacks ambition or mentorship.
  • Networking and Exit Opportunities: Market risk roles often involve collaboration with front-office teams, making it easier to network and transition into trading or other strategic roles. Execution roles, while closer to trading, might not offer the same breadth of exposure or connections.

Recommendation:

If you value immediate trading experience and are confident in your ability to self-learn and grow despite the environment, the execution role could be a good choice. However, if you prioritize long-term growth, mentorship, and a stronger foundation, the market risk role at the oil and gas company might be the better option. It offers a broader platform to build your career, even if the path to trading is less direct.

Sources: My Experience as a Market Risk Analyst, Stay on commods desk at BB or move to glencore/trafigura?, Guide to Careers in Market Risk, Staying in my development role vs investment sales analyst position?, A Career In Market Risk

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Background: I worked in Trading for 12 years in major investment banks, and have hired a number of people internally from other areas, including ones similar to "market risk operations", into trading teams.

My thoughts for your situation: the external role seems appealing given the salary increase, brand and exposure you would get there. From there it is possible that you could move to a trading role, though this is of course not something you can count on. As I said I did hire internally from risk/operations to trading, but I am sure there are also places where they pretty much never do that. I would think of it as follows: out of these two options: which one would you not mind doing for the next say 5 years. That can maybe give you an answer. 

Whatever you decide, good luck with your decision!  

 

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