prop trading

[derekli]

some big banks are shutting down/shrinking their prop trading desk. what is happening to independent prop trading firms then?

my understanding of the difference between prop shops and hedge funds is that prop shops use their own money, but hedge funds use investors'. Any other differences? Many high-profile HF made big loss last year. How about prop trading firms?

Thanks,
Derek

 

[arabianights]

some blowing up, others going from strength to strenght

 

[MrGecko]

size and scaleability of strategies is probably the most important difference

 

[derekli]

what are the best prop trading firms?

 

[Skill Leverage]

The i-banks obviously have far less appetite for risk at the moment, and since most of them consider their prop desks to be their 'riskiest' arms, they are among the first to see the axe. As arabian says, pure prop firms are either doing well, or they're not, same as always. Traders want volatility, and there's certainly been a decent amount of that in the past 12 months.

 

[DavidCarpentier]

If you have say 2 years work experience as a prop trader at a prop house, do many banks consider you for their prop desks?

To me, it seems that most investment banks hire internally for their prop desks. (or by word of mouth)

is it easier for a prop trader to go from a prop house to a HF rather than a prop house to a IB?

 

[red army]

If you have say 2 years work experience as a prop trader at a prop house, do many banks consider you for their prop desks?

To me, it seems that most investment banks hire internally for their prop desks. (or by word of mouth)

is it easier for a prop trader to go from a prop house to a HF rather than a prop house to a IB?

why would anyone want to work on a prop desk in a bank??? thats if they have one.......

 

[DavidCarpentier]

why would anyone want to work on a prop desk in a bank??? thats if they have one.......

why not??

 

[arabianights]

is it easier for a prop trader to go from a prop house to a HF rather than a prop house to a IB?

Significantly easier (not to suggest it's at all easy mind), although toss a coin for whether the former will exist and whether the latter will have prop desks in two years time...

 

[Skill Leverage]

Significantly easier (not to suggest it's at all easy mind), although toss a coin for whether the former will exist and whether the latter will have prop desks in two years time...

Arabian you're such a doom merchant... not to mention a turd burglar

 

[red army]

why not??

well current climate bla bla, from what i've seen friends are being given the boot and from hedge funds aswell....Not the best time to look for a trading job in a bank.

 

[DavidCarpentier]

thanks