Trading ->Hedging -> Trading?
Physical trader here. Been in the game 4 years trading softs and looking to make a jump to the energy side do the business with the end goal of working for a HF fund. I have an offer to work for a shop that is doing hedging for clients in the fuel space. Is this a good way to get my foot in the door learn the space and then jump back to the trading side at an energy house? Worried about getting stuck in hedging.
Once I got back to the trading side I would want my step after that to be moving to a HF.
Curious about thoughts on this transition.
Additionally, how does comp compare in the hedging space to trading? Products are in fuels (natural gas, heating oil, RBOB, propane, ETC.)
edging* ?
For comp: Hedging types of jobs will pay lower and have way less upside, though you can still get paid very well. They will also have better job security.
I think you have to separate hedging into two different categories. If you are just executing someone else's orders/plan, you will look much worse to any perspective employer. If you are designing the plans and have some general autonomy, you would be in a much better spot. I think it could be a good way to get into products you want and learn. You need some experience before going to a HF. Moving from hedging to a spec spot, you need to be prepared to take a lateral move at best with a potentially much lower base salary, especially if you stay on the hedging side for a few years and get a promotion or two.
If OP is already a trader, moving to a “hedging” role is a questionable move. This is no different than a hedge fund PMs switching to entry level execution trader job. He will get questioned about it, and it will make future employers question his reasoning process. This is a kiss of death career transition to me.
What if he is switching products? I would imagine there is a story to be told there no?
He’s not going to learn anything about a new product by hedging. This is a waste of his time and a dead end move.
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