Career as market maker

[sandra1]

Any insights on what the careerpath of a market maker can be? What can you do after? I know being a market maker is not something you can do for the rest of your life...

 

[dealer911]

Any insights on what the careerpath of a market maker can be? What can you do after? I know being a market maker is not something you can do for the rest of your life...

I was a market maker in equities for a few years - you need to get a job at an investment bank.. very competitive to find a position.. In the UK you normally find market maker roles through word of mouth.. it's a very incestuous segment and people move from bank to bank on recommendations from ex-colleagues - you are right it is not a job you want to do for the rest of your life but you do learn alot about markets and how different clients trade.. you need to know how to hedge your book and you are normally on the wrong side of most trades as you are facilitating client orders.. tough area to crack into.. it's more about risk management than actual position trading but it can be fun.. as i said try for a junior role at a bank and spend a couple of years getting the desks breakfasts - best of luck.

 

[sandra1]

Hey, thanks for your reply. I'm actually working at the dealingroom of a bank now, but more in a brokerage role for fixed income products. I have been offered a trainee position at an options market maker, so I would step out of the bank then. It's a difficult decision, should I stay or should I go.....

 

[dealer911]

Hey, thanks for your reply. I'm actually working at the dealingroom of a bank now, but more in a brokerage role for fixed income products. I have been offered a trainee position at an options market maker, so I would step out of the bank then. It's a difficult decision, should I stay or should I go.....

i would go for it if I were you - good chance to learn a new skill and a new product (options)- options market making is alot different from equities market making - still very competitive but you are not really facilitating clients in the same way - you just make a market around the fair value of the option and hedge your risk - you would find it a steep learning curve but it should help your long term career prospects - I would do it!

 

[sandra1]

Thanks dealer911!