What do sell-side "traders" do?

you are an execution trader at a hedge fund?

not exactly sure what you mean by execution trader. I work for one of the big private trading houses (about 20b turnover), and both trade and develop strategies to put on spec/arb positions.

All I know from the sell-side guys is their daily wires that basically only quote the market, what do these guys actually get paid for?

they get paid to take the other side of your trade, and know how to trade around it to make the firm some money.

then you're an analyst, not a trader. Buy-side traders execute trades...that's it.

I interned on a sell-side bank and sold stuff when they told me and bought stuff when they told me, is that what you mean by execution? the spec and arb stuff nowadays is much more involved.

I'd like to know as well Jimbo. I think this guy if full of "hot air" so to speak.

I worked for a BB, was the most boring work I've ever had. basically built power points that told people to use our "expert advice." We didn't really trade, just played telephone between clients and the guys on the floor.

buy-side traders take risks and get returns based on the risk. sell-side guys do prop bets but also they make money off bid-ask spreads. ideally (i'm a sell-side trader) i have my bid and offer correct on the market and i make a few cents or bps or ticks or whatever as sellers hit my id and buyers lift my offer. that being said we def take prop bets as well, and will move market to reflect that.

the only trading i've ever heard of happening at a BB as an intern was a dude was given control over a VERY small FX book, since you don't have to pass a series 7 or 63 (or so i'm told?. was no real risk.

Depends on the product. In structured credit, sell side trading was mostly related to risk management/hedging for portfolios that my firm sold.

This question comes up again and again on wso