Junior Derivatives Trader - Top Prop Trading Firm

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Proprietary trading also "prop trading" occurs when a trader trades stocksbondscurrenciescommoditiestheir derivativesor other financial instruments with the firm's own money, aka the nostro account, contrary to depositors' money, in order to make a profit for itself. Many reporters and analysts believe that large banks purposely leave ambiguous the proportion of proprietary versus non-proprietary trading, because it is felt that proprietary trading is riskier and results in more best proprietary trading firms in new york profits.

Banks are companies that assist other companies in raising financial capital, transacting foreign currency exchange, and managing financial risks. Trading has historically been associated with large banks, because they are often required to make a market to facilitate the services they provide e.

For example, if General Store Co. The investment bank agrees to buy the shares sold and look for a buyer. This provides liquidity to the markets. The bank normally does not care about the fundamental, intrinsic value of the shares, but only that it can sell them at a slightly higher price than it could buy them.

To do this, an investment bank employs traders. Over time these traders began to devise different strategies within this system to earn even more profit independent of providing client liquidity, and this is how proprietary trading was born. The evolution of proprietary trading at banks reached the point where many banks employed multiple traders devoted solely to proprietary trading, with the hopes of earning added profits above that of market-making.

These proprietary trading desks were often considered internal hedge funds within the bank, performing in isolation away from client-flow traders. Proprietary desks routinely had the highest value at risk among other trading desks at the bank. At times, investment banks such as Goldman SachsDeutsche Bankand the former Merrill Lynch earned a significant portion of their quarterly and annual profits and losses through proprietary trading efforts. Regulatory bodies worldwide require that the proprietary trading desk is kept separate from its client-related activity and trading.

This is achieved by the use of information barriers also known as " Chinese walls "which prevent conflict of interest which might, for example, allow a Bank to front-run its own customers. There often exists confusion between proprietary positions held by market-making desks sometimes referred to as warehoused risk and desks specifically assigned the task of proprietary trading. Because of recent financial regulations like the Volcker Rule in particular, most major banks have spun off their prop trading desks or shut them down altogether.

It is carried out at specialized prop trading firms and hedge funds. The prop trading done at these firms is usually highly technology-driven, utilizing complex quantitative models and algorithms. One of the main strategies of trading, traditionally associated with banks, is arbitrage. In the most basic sense, arbitrage is defined as taking advantage of a price discrepancy through the purchase or sale of certain combinations of securities to lock in a market-neutral profit.

The trade will remain subject to various non-market risks, such as settlement risk and other operational risks. Investment banks, which are often active in best proprietary trading firms in new york markets around the world, constantly watch for arbitrage opportunities. One of the more-notable areas of arbitrage, called risk arbitrage or merger arbitrage, evolved in the s.

When a company plans to buy another company, often the share price of the buyer falls because the buyer will have to pay money to buy the other company and the share price of the purchased company rises because the buyer usually buys those shares at a price higher than the current price. When an investment bank believes a buyout is imminent, it often sells short the shares of the buyer betting that the price will go down and buys the shares of the company being acquired betting the price will go up.

There are a number of ways in which proprietary trading can create conflicts of interest between a bank's interests and those of its customers. As investment banks are key figures in mergers and acquisitions, it is possible though prohibited for traders to use inside information to engage in merger arbitrage. Investment banks are required to have a Chinese wall separating their trading and investment banking divisions; however, in best proprietary trading firms in new york years, especially since the Enron scandalthese have come under closer scrutiny.

One example of an alleged conflict of interest can be best proprietary trading firms in new york in charges brought by the Australian Securities and Investment Commission against Citigroup in Famous proprietary traders have included Ivan BoeskySteven A.

Some of the investment banks most historically associated with trading were Salomon Brothers and Drexel Burnham Lambert. Trader Nick Leeson took down Barings Bank with unauthorized proprietary positions. Another trader, Brian Hunterbrought down the hedge fund Best proprietary trading firms in new york Advisors when best proprietary trading firms in new york massive positions in natural gas futures went bad.

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Bluefin Companies is a privately-owned multi-strategy trading firm. We are focused on seeking out trading and investment opportunities to grow our capital in the global financial markets.

Bluefin was formed in to bring together high caliber people, innovative and quantitative modeling, and cutting edge technology to seek out trading and investment opportunities around the globe across Equity, Commodity, Fixed-Income, and Foreign Exchange products. The Bluefin partners facilitate the active evolution of ideas and strategies through an open dialogue between partners, traders, IT professionals and support staff.

Teamwork is critical within our casual, yet intense environment. We subject ideas to rigorous debate and constantly test ourselves against the market. We seek employees who can add value to the process by developing a deep understanding of the markets, its trends and behavior, and can deploy that knowledge through building systems and trading the markets.

Successful employees have an entrepreneurial spirit and thrive in an environment that rewards thinking outside the box. We value intellect, creativity, integrity, and expertise in all forms.

After gaining a solid foothold in the equity and equity derivative markets, Bluefin expanded to equity option and initiated energy derivatives trading at the New York Mercantile Exchange in This led an expansion into the commodity markets with trading in the energy, agricultural and metals markets in New York and Chicago. The firm also expanded into the European and Asian equity and derivative markets.

Over the next few years, Bluefin continued to develop new quantitative trading and investment strategies and has made a substantial commitment to trading and investing in fixed income. Bluefin trading entities are focused on trading and investing our capital strategically across different asset classes.

Our strength lies in continuously seeking out trading and investment opportunities in financial derivatives across a broad array of products and markets. Extensive experience in trading, combined with sophisticated modeling and cutting edge technology, enable us to actively trade in markets around the globe.

Bluefin trades and dynamically positions risk in many products from both upstairs trading desks and on-floor posts. Bluefin promotes an entrepreneurial, risk-taking culture that is driven by our employees. We consistently seek to hire experienced traders who have a history of making money while managing risk, are motivated and decisive, and maintain a high level of personal integrity and confidence.

Our most successful traders have developed a deep understanding of the nuances of exchange-traded derivatives. They have strong communication and mathematical skills and thrive while working in a fast-paced team-oriented environment.

Assistant traders undergo rigorous training by senior traders and provide trading and operational support to our trading teams. Assistant traders also have the opportunity to participate in the research and development of new trading opportunities.

Daily duties include profit and loss reconciliation, executing basic trades, and acting as liaison between traders and back office. If you are interested in becoming an Assistant Trader in our Hong Kong office, please email hkjobs bluefintrading. Our IT professionals provide the critical systems for our ever-changing trading strategies. Network professionals develop and deploy our network and infrastructure strategy.

Application programmers work closely with our traders to develop high-performance trading systems. IT support professionals help keep our mission-critical systems and infrastructure performing at high efficiency around the clock. Disclaimer and User Agreement Site by reitdesign. All persons using this website or the websites of any affiliated companies collectively, "Site" expressly agree to the following terms as a pre-condition to using the Site for any purpose whatsoever.

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Companies Proprietary Trading Careers. Culture History Gallery We believe that the fluid exchange of ideas is critical to successfully adapt to dynamic and evolving markets. Bluefin Trading, the first Firm in the Bluefin Companies, was founded in We seek to be intelligent and opportunistic risk takers.

Experienced Traders Assistant Traders IT Professionals Bluefin promotes an entrepreneurial, risk-taking culture that is driven by our employees. Contact Us info bluefintrading.