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#11
09-26-2005, 10:56 AM
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Re: who else on 2+2 trades professionally?
[ QUOTE ]
could you please explain to me what a 'trader' is? how is that different from a stock broker? [/ QUOTE ] A stock broker is a commissioned salesman that takes the research produced by a research analyst and sells you on the reasons to buy a stock. When you make a trade the broker sends the trade to a trader for actual execution. The broker makes his money by convincing you to make trades, and sometimes (ala Boiler Room - definately recommended movie) getting you into questionable IPOs, or other low quality stocks that they may be compensated for dumping on you. A Trader, actually executes a stock transaction in the market. They may be doing this on behalf of a firm, acting as a market maker/specialist, managing retail (customer) orders, or for their own account. 
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#12
09-26-2005, 11:00 AM
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Re: who else on 2+2 trades professionally?
you on othernet?
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#14
09-26-2005, 04:21 PM
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Re: who else on 2+2 trades professionally?
pm'd you earlier in the day but you never replied
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#15
09-26-2005, 04:46 PM
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Re: who else on 2+2 trades professionally?
Not part of this I hope.
http://news.efinancialcareers.co.uk/...ewsItemId-4660 Plain vanilla equity execution traders are being crushed by automated systems. For the longest time, this has been known. Do you ever think about switching products or are you trading prop for an institution, in which case this probably doesn't concern you.
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#18
09-26-2005, 08:52 PM
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Re: who else on 2+2 trades professionally?
I'd say sell-side execution traders main skills would be client relationships. At the fund I was at, we dealt with Asian equity desks so they might be a bit different but basically equity execution traders are sales traders. They call you to give you pre-open updates and what to look out for during the day, they also give you some idea of the flow they are seeing and stocks available to cross. Occassionally they might suggest a trade idea to you although I don't think anyone takes that seriously. Basically, they are calling to remind the buyside trader that they are there and looking to be helpful or add value in hopes of getting orders(and hence commissions). So now, let's say the buyside trader gives the sell-side trader an order. He'll go ahead and execute that order over the day usually with discretion(but this all depends on the instructions you tell them) and probably a minimum goal of beating VWAP. Goldman is moving more toward automation here as they have an algorithmic model to match VWAP(although I've seen this in action, it kinda sucks and some of the fills look very random).
Buyside execution traders will be responsible for managing the orders and making sure they get executed and so they will be in contact with the sell-side desks a lot. They also need to manage relations with the sell-side so that they get treated well. In effect, you look to scratch each other's backs(we give you a lot of commissions you give us good IPO allocations, etc.). Depending on the fund structure, buyside traders also might do more than just execution. Not sure if I am leaving anything out, but this is what I came up with off the top of my head.
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#20
09-27-2005, 08:01 AM
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Re: who else on 2+2 trades professionally?
[ QUOTE ]
I'd say sell-side execution traders main skills would be client relationships. At the fund I was at, we dealt with Asian equity desks so they might be a bit different but basically equity execution traders are sales traders. They call you to give you pre-open updates and what to look out for during the day, they also give you some idea of the flow they are seeing and stocks available to cross. Occassionally they might suggest a trade idea to you although I don't think anyone takes that seriously. Basically, they are calling to remind the buyside trader that they are there and looking to be helpful or add value in hopes of getting orders(and hence commissions). So now, let's say the buyside trader gives the sell-side trader an order. He'll go ahead and execute that order over the day usually with discretion(but this all depends on the instructions you tell them) and probably a minimum goal of beating VWAP. Goldman is moving more toward automation here as they have an algorithmic model to match VWAP(although I've seen this in action, it kinda sucks and some of the fills look very random). Buyside execution traders will be responsible for managing the orders and making sure they get executed and so they will be in contact with the sell-side desks a lot. They also need to manage relations with the sell-side so that they get treated well. In effect, you look to scratch each other's backs(we give you a lot of commissions you give us good IPO allocations, etc.). Depending on the fund structure, buyside traders also might do more than just execution. Not sure if I am leaving anything out, but this is what I came up with off the top of my head. [/ QUOTE ] Let me tell ya, that is nothing like options market making.
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