| Topic Name: |
Traders Compensation |
| Message Name: |
re |
| Date Posted: |
11/19/2003 |
| In Reply To: |
each one and do u think u can give me some advice. I am junior at a small school outside Chicago, Do I have any chance of getting into any firm? |
| Message: |
If you are willing perform the necessary due dilligence to find the names and contact info of decision makers, your school can be almost irrelevant. There are numerous traders that went to small, lessser known schools.
Regarding compensation, generally speaking, if you have a base salary, the bonus will be based on your personal profits, your desk's profits and the firm's profits as a whole.
However, it depends on how each firm computes it's trader's profitability:
gross/net profits, % of net income, % of cash flow, % of VaR, etc... I'm personally a fan of a trader being compensated as a function of profits in relation to VaR because IMHO it shows the traders true value.
Bonuses vary so much from one shop to another it's impossible to make an accurate generalization.
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