Longevity of Equity Derivatives Trading

Hi,

Just finished my internship at a BB and was offered a spot on their equity derivs trading team. Although I'm really excited for the opportunity, I've struggled with getting a better picture of what the future looks like for a derivs trader. I tried asking people during the internship but didn't want to be so blunt as to put them in a position where they had to tell me if there is still a career to be made.

To give some background, I'm non-target and don't program (at all). I just hustled my way through the internship and they liked me enough to give me an offer.

So, is there a future in equity derivs trading for someone like myself? I've been thinking of leveraging the offer to get into IB or something with better prospects/exit opps.

Thanks

 

Don't even think twice. Take the offer and don't look back. Commit 100% that you are going to do your best and give it a fair shake.

I work for a derivatives desk and honestly the truth is none of us can predict the future. We can all sit around and guess what tomorrow will be like and likely be wrong about it or we can take what is in front of is now in the moment and move forward. In terms of automation, derivatives desks are quite complex and thus it's a lot harder to automate everything but look automation is a good thing. The less boring manual work I have to do the more time I can spend doing things that are more important. Sure headcount will be reduced but if you work hard and evolve with the technology you should be fine. Not sure if this answers you question about longevity but if you want to talk about burn out that's a differnt topic

 
Most Helpful
benso8:
Don't even think twice. Take the offer and don't look back. Commit 100% that you are going to do your best and give it a fair shake.

I work for a derivatives desk and honestly the truth is none of us can predict the future. We can all sit around and guess what tomorrow will be like and likely be wrong about it or we can take what is in front of is now in the moment and move forward. In terms of automation, derivatives desks are quite complex and thus it's a lot harder to automate everything but look automation is a good thing. The less boring manual work I have to do the more time I can spend doing things that are more important. Sure headcount will be reduced but if you work hard and evolve with the technology you should be fine. Not sure if this answers you question about longevity but if you want to talk about burn out that's a differnt topic

This.

In the end, financial services is a very cyclical business so in any downturn few people are really safe. As I have said before, look at the seniors around you and feel free to ask them how things have been changing in recent years and if they are older, about pre-crisis times. They will tell a fair few stories, and I am sure mention more than a few bodies that have come and gone, many of which are no longer in the business. The older guys on the desk might be good, but remember that they are survivors above all else.

As for transferring within the firm, it depends on your bank, bosses, culture, the market and obviously you (these are broad answers, I know). Given the cost pressures, particularly trading and the juniorization of many desks (especially with less/no prop), banks will always be happy to cut. The last few years have been savage for all kinds of trading desks, EQD included.

But you can't fear the future. One can try to prepare, or be flexible. Until then, work hard, be liked, network, learn, see, hear, listen, do and keep getting better. Strive to be a better person at work and even more so outside of work. Hopefully you enjoy the ride.

Good Luck

I used to do Asia-Pacific PE (kind of like FoF). Now I do something else but happy to try and answer questions on that stuff.
 

Quaerat est facilis quo facere. Ipsum optio id omnis officia totam. Aspernatur nihil vitae tenetur ab et earum. Aperiam eveniet id ea porro dolor.

Perspiciatis praesentium velit laudantium nisi iure tenetur ea. Recusandae esse eum ut amet ad illum. Consectetur rerum vero est voluptatem voluptas culpa veniam. Ipsam hic molestias fugit totam ipsam. Voluptatem vitae magni reprehenderit a sed dicta. Iste labore veritatis odio error quia aut. Distinctio autem perspiciatis est suscipit expedita praesentium.

Voluptatem molestiae quia incidunt dolor qui. Fugiat adipisci qui consequatur cumque magnam voluptatem. Qui quia voluptatem voluptates corporis quo quas aut consequatur. Sapiente excepturi velit quas quos perferendis. Iusto nemo impedit recusandae consequatur sunt. Sed voluptates nemo et eos. Libero quas nesciunt consequuntur voluptatem occaecati numquam neque.

Velit eum et quo modi qui repellat. Et qui odio sed numquam et itaque. Quod repudiandae alias pariatur iure et ipsum tempore in. Quia unde et reprehenderit tempora. Non quis eos provident aliquid veritatis veniam nemo error. Nihil non natus temporibus. Dignissimos ullam dolores sint sit et veniam voluptatem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”