Exactly what does an entry-level analyst trader do at a BB...
I still can't make out or understand what an analyst in S&T at a BB actually does. I know the role is to support junior and senior traders, so do you get to trade at all? The structerers design the product you're trading, the sales people maintain relationships with clients. So, if you're not even the one making the execution, exactly what are you doing? Pricing products? Managing risk? Making models? Isn't that all done by either a different department or on the computer? Can some current analysts please offer a-day-in-the-life-of type insight? And sorry if others are offended by my amateurish question, but I am relatively new to the field and recently found an interest in trading. Thanks in advance.
trading=managing risk. that's the first thing.
a junior traders role is different depending on product. at first you will sit and observe. you may reconcile trades. if on an options desk, you may make lists of and confirm option exercises. you may work with mid office to reconcile p&l. you will sit and learn how the market's dynamics affects your products.
after a period you will be given limited trading opportunities with small trades to see how you do...
yes managing risk is what is done
how do u think trading at a BB compares to being an options trader at CBOT? i dont know much about this area of finance, but im in the chicago area and im pretty confident i can get a sophomore internship at CBOT
you are asking two different questions. the experience is different. the trading floor of a bank is not like the pit.
but that would be a great internship.
You are an extension of the traders themselves. You do a lot of the work that they don't want to do or don't have time to do. This allows them to focus on the important things like making money.
I'm starting as a trading assistant on a risk/merger arbitrage desk (albeigt it's MM not BB) full time. So can I assume my role is to look after the subordinate tasks (booking trades etc...) and usual house-keeping such as closing the trades, and be a window person for the MO/BO?
So do I actually trade at limited capacity at all?
Well first of all the most junior guy on the desk does anything that no one else wants to do - this can include assembling comments for meetings, pringing out research, hell until you show you have a backbone people will tell you to get them coffee/dry cleaning etc - the sooner u have the confidence to tell them where to stick it the better.
More relevently you will be checking risk on counterparties, booking trades and updating/creating pricers, watching positions and alerting the relevent traders when they need managing. Essentially as someone else says doing all the work no one else wants to do and freeing the traders up to trade.
Sounds like a pretty bum deal? Well you're getting a feel for everything you need to, assembling meeting notes and printing out research (always look at it) will build up general market knowledge and by looking at the trades you're booking and asking questions you will learn something, by building pricers you must understand the products and everything that affects them.
Depending on your desk you can start covering low risk areas (that is even if u mess up completely the damage is limited) - so I work in rates and was covering FX forwards up to one week as well as the $ and € future hedges
At somepoint if you impress you get given your own book and then you'll be trading for real - usually just a small aspect of your product group but it's here that you have to demonstrate you know what you're doing and can make money.
So there we are.....
Oh an inevitably the last person to join will do the run for bacon and eggs when everyone is hung over on a friday morning.
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