Equity Trader Job Description
An equity, or stock, trader applies financial acumen and securities markets knowledge to evaluate stock or preferred stock information and make investment decisions. A stock trader usually works with an assistant who helps him price securities in which he is interested. An equity trader usually has a four-year college degree in finance.
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Responsibilities
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An equity trader monitors securities markets and buys, holds or sells equity products based on financial data and research. These products may include stock, preferred stock and stock futures. A stock trader who uses a corporation's own funds to invest on securities exchanges is known as a proprietary trader. The firm records in its investment account all gains made and losses incurred in proprietary transactions. An equity trader typically receives a bonus at the end of the year if proprietary transactions indicate profits.
Education and Training
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No formal education is needed to engage in equity trading activities, but most financial institutions require that equity traders have, at a minimum, bachelor's degrees in business or finance. An equity trader with a lower degree or a liberal arts major is not uncommon in the profession. Some stock traders have advanced degrees, such as masters or doctorates, in finance, investment analysis or economics. An equity trader with a risk management background typically has a doctorate in a quantitative field such as math, statistics or econometrics.
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Salary
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A stock trader's salary mostly depends on her performance. However, other factors, such as academic training, professional certification, stock market returns and economic trends, also may affect an equity trader's remuneration. The U.S. Labor Department reports that average salaries for equity traders were $68,680 in 2008, excluding cash and stock bonuses. The middle half of the occupation earned from $40,480 to $122,270, according to the same report.
Career Development
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A stock trader may be promoted faster if his financial performance is outstanding. An equity trader also may advance professionally by seeking a higher degree or an industry certification. For instance, a stock trader with a bachelor's degree may seek a master's degree in economics, investment analysis or asset management. A competent and productive equity trader may move to a senior position within two to four years, or could trade independently and on behalf of other clients.
Working Conditions
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An equity trader usually works during securities exchanges' operating hours, that is, from 9.30 a.m. to 4.00 p.m. for a New York-based trader who invests in securities listed on the New York Stock Exchange (NYSE). A stock trader also may trade on Asian markets, in which case she works at night or early in the morning. An equity trader who has supervisory responsibilities may have a standard 9-to-5 work schedule.
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References
- Photo Credit International Finance: currencies from around the world image by Vladimir Melnik from Fotolia.com
