Arcade Spread Trader Earnings

[bobl boy]

Hi everyone,
does anyone know if it is possible if you are very good to earn 7 figures a year purley spread trading in an arcade.I've heard the ball park figure is about E100,000 a year,what are the chances of earning more than this trading large size eg 200,300 thousand a year trading the euribor,shatz, bobl and bund spreads and is there one particular spread that earns most but might have more risk etc.Or do the really high earners spread trade then trade outright off fundamentals aswell to increase there earnings.Anyone have any ideas?Thanks in advance.

 

[Directional]

Paul Rotter is a spreader - he's the guy flipping prices in the bund, bobl and shatz as he puts his spreads on. Apparently earned over £30m last year according to Trader Monthly's earnings survey

 

[bobl boy]

Yes he earns a huge amount of money although he's an exception really because of his size, I was talking about the average 25 year old at an arcade, any idea what they earn spread trading futures.

 

[JonnyT]

They might actually lose money...

JonnyT

 

[TWI]

They might actually lose money...

LOL

bobl boy - I think the word "average" in your mail might ensure that. A lot of people will make nothing for 12-18months and then start to eek out a living. You will know within 12 months how good somebody will be although sdisasters show up earlier rather than later. Those earning 100k+ are the exception rather than the rule these days, a lot just make a living, although I hear the STIRS are getting better again. The good ones make considerably more than this, all the way up to the Ellis and the Rotter who are top of the scalping stack.

 

[bobl boy]

Thanks for the reply twalker.It's just I'm trying to decide if the industry is worth the 12 hour days,stress and tough learning curve when all I keep hearing is that it's getting harder and harder to earn smaller and smaller amounts of money.From what I understand those that have been doing spread trading at the arcades for a good few years have built up enough on account to trade larger size because it used to be easier.Is it still possible in your view to be able to earn a living from this and build up your account at the same time or has it become to hard and do you think there is a future in this industry.

 

[TWI]

In the past 3 years scalping stirs has certainly got a lot harder. I have seen this in both actual results of people on sponsored schemes and because I was scalping myself up until earlier this year. I stopped because I had an opportunity to set up a commodity hedge fund not because I blew up or anything like that but it was certainly orders of magnitude harder when I left it than when I started and indeed large clips were necessary if you wanted to get reasonable fills on Liffe. Risk went far higher and reward if anything decreased. There are still plenty of people doing this style of trading and I have seen some phenomenal traders out there who appear to have a real natural ability for this type of thing and make a huge return. If you think you may be one of those then go for it. Scalping is about trading what you see not what you think. You will not know if you have what it takes until you try but do not underestimate the risk you are taking to find out . If you are in a position to take this risk then I would recommend it but it will be very hard. You will certainly come out a trader with a far better appreciation of risk/reward and also know a lot about market execution. One thing it is not is a "get rich quick" scheme it is more a "die trying" type thing.

 

[charliechan]

you may be better off trying to be original and trade something other than the stuff everyone else is grinding to death doing. some arcades like refco will allow this i think, others wont.

btw - does rotter trade spreads? i thought he was doing outrights playing on those who do trade spreads as they lean on his false size????

 

[bundbaby]

Please can we start with some easier questions before attempting to answer anything relating to how much does the average trader (spreader or whatever) earn?

Lets tackle these first:

Where is Lord Lucan?

How many lovers has Ulrika had?

What colour are the walls when the lights are off?

When is the second coming of the lord?

Oh yes, and what is closing pricee of the Dow Jones tomorrow?

 

[Directional]

btw - does rotter trade spreads? i thought he was doing outrights playing on those who do trade spreads as they lean on his false size????

it varies depending on his position and the market, but often he will be trying to get people offside on both legs by flipping both the bund and the bobl at the same time in different directions, meanwhile he's building up a huge spread pos with several ticks edge in the spread

 

[traderboi]

Bobl Boy,

Be prepared, it will probably be the most difficult thing you've done in your life!

Speaking as a trainee 16months into a grad prog...I was so close to giving up, there seemed to be no light at end of an impossibly long tunnel, long hours, making little progress, scant financial reward, emotionally draining.. All this for one year!

Then in what was to be my final attempt at cracking the trading game..something 'clicked' (difficult to describe) and everything fell into place...

Am very fortunate firm are supportive, not a 'burn and churn' place like many others out there..

Good luck

 

[anley]

Setup a normal business away from the markets, make profits everyday and grow your business naturally. Far better lifestyle, job and potential earnings. Always exceptions to the rules of course....