# Execution and Sales Trader

> Execution traders carry out portfolio decisions at the best cost; sales traders serve clients and route their orders. Learn the work and the skills.

Source: https://learn.tradelabsai.com/industry/execution-and-sales-trader/  
Track: The Trading Industry · Level: Intermediate · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Execution and Sales Trader", https://learn.tradelabsai.com/industry/execution-and-sales-trader/

Not every trader decides what to buy or sell. Execution traders and sales traders specialise in how orders reach the market. A buy side execution trader takes a portfolio manager's decision, such as buying 2 million shares, and executes it at the lowest total cost. A sell side sales trader looks after institutional clients, takes their orders, gives market colour and works with the bank's traders and algorithms to execute them. Both roles require deep knowledge of market structure and calm judgement under pressure.

## The two roles

| | Buy side execution trader | Sell side sales trader |
|---|---|---|
| Employer | Asset manager, hedge fund, pension fund | Bank or broker |
| Serves | Internal portfolio managers | External institutional clients |
| Main goal | Minimise trading costs and information leakage | Win and keep client business, deliver good execution |
| Daily tools | Execution management systems, algorithms, broker relationships | Order management systems, client chats and calls, internal trading desks |
| Success measures | Transaction cost analysis | Client revenue, rankings and feedback |

## What an execution trader does

1. **Receives orders** from portfolio managers, with urgency and limits.
2. **Chooses a strategy:** algorithm, block trade, dark pool or risk trade with a broker. See [Execution Algorithms vs Alpha Algorithms](https://learn.tradelabsai.com/algo-trading/execution-algorithms/) and [Dark Pools](https://learn.tradelabsai.com/market-structure/dark-pools/).
3. **Selects brokers and venues.** See [Order Routing and Smart Order Routing](https://learn.tradelabsai.com/orders/order-routing/).
4. **Monitors execution,** adjusting to news, volume and price moves.
5. **Reviews results** with transaction cost analysis. See [Implementation Shortfall](https://learn.tradelabsai.com/orders/implementation-shortfall/).

**Example: Choosing between an algorithm and a block**
A PM wants to sell 1.5 million shares of a mid cap stock that trades about 3 million shares a day. Running a VWAP algorithm for a full day would mean selling about half the daily volume, likely pushing the price down noticeably and signalling the selling. The execution trader instead asks several brokers for a risk price on a block. One bids 1.2% below the last price for the whole amount. The trader compares this with the estimated impact of an algorithmic sale, roughly 1.5% to 2% plus timing risk, and accepts the block, finishing the trade immediately at a known cost. See [Market Impact](https://learn.tradelabsai.com/orders/market-impact/).

## What a sales trader does

- **Client coverage:** daily calls and chats with buy side traders.
- **Market colour:** sharing what is moving and why, flows and themes.
- **Order handling:** taking orders, suggesting algorithms or risk prices.
- **Liaison:** connecting clients with the bank's market makers, program trading and electronic desks.
- **Problem solving:** handling errors and difficult executions.

## Key skills

| Skill | Why |
|---|---|
| Market structure knowledge | Venues, order types, auctions. See [Market Structure Basics](https://learn.tradelabsai.com/price-action/market-structure-basics/) |
| Understanding of algorithms | Choosing and tuning execution strategies |
| Communication | Fast, clear and precise, often under pressure |
| Judgement | When to be patient and when to trade quickly |
| Accuracy | Errors in size, side or price are costly. See [Operational and Model Risk](https://learn.tradelabsai.com/portfolio/operational-and-model-risk/) |

## Measuring execution quality

| Benchmark | Use |
|---|---|
| Arrival price | Cost versus the price when the order started |
| VWAP | Comparison with the day's volume weighted average price. See [VWAP](https://learn.tradelabsai.com/volume/vwap/) |
| Close | For orders targeting the closing price |
| Implementation shortfall | Full cost including unfilled portions |

Regulators require firms to take steps to achieve best execution and to document how they do it. See [Best Execution and Execution Quality](https://learn.tradelabsai.com/orders/best-execution/).

## The changing role

Electronic trading and algorithms have automated much routine execution. Execution and sales traders now focus more on large, difficult or illiquid trades, algorithm selection, data analysis and client advice. Familiarity with data and coding is increasingly valued. See [Python for Trading](https://learn.tradelabsai.com/programming/python-for-trading/).

## Frequently asked questions

### What does an execution trader do?

Carries out portfolio managers' orders in the market while minimising costs, market impact and information leakage.

### What is a sales trader?

A sell side professional who manages relationships with institutional clients, takes their orders and coordinates execution with the bank's trading desks.

### Is execution trading a good path to portfolio management?

It can be, since it builds deep market knowledge, though portfolio management usually also requires investment research experience.

Next, learn about market making and options trading careers in [Market Maker and Options Trader](https://learn.tradelabsai.com/industry/market-maker-and-options-trader/).

## Continue learning

- Next lesson: [Market Maker and Options Trader](https://learn.tradelabsai.com/industry/market-maker-and-options-trader/)
- Previous lesson: [Portfolio Manager](https://learn.tradelabsai.com/industry/portfolio-manager/)
- Related: [Portfolio Manager](https://learn.tradelabsai.com/industry/portfolio-manager/): Portfolio managers decide what a fund holds and answer for its results. Learn the types of PMs, the daily work, skills needed and how people become PMs.
- Related: [Execution Algorithms vs Alpha Algorithms](https://learn.tradelabsai.com/algo-trading/execution-algorithms/): Execution algorithms split large orders into smaller pieces to reduce market impact. Learn VWAP, TWAP, POV and implementation shortfall algos and how to choose.
- Related: [Best Execution and Execution Quality](https://learn.tradelabsai.com/orders/best-execution/): Best execution is a broker's duty to get you the most favourable terms on orders. Learn what it covers, price improvement, routing reports and how to judge fills.
- Related: [Trading Desks](https://learn.tradelabsai.com/industry/trading-desks/): A trading desk is a team focused on one market or activity. Learn how bank and fund desks are organised by asset class, the roles on a desk and a typical day.
- Related: [Buy Side vs Sell Side](https://learn.tradelabsai.com/industry/buy-side-vs-sell-side/): The buy side invests money; the sell side provides trading, research and capital raising services. Learn the main firms, roles, incentives and career differences.
- Related: [Implementation Shortfall](https://learn.tradelabsai.com/orders/implementation-shortfall/): Implementation shortfall compares a paper portfolio traded at the decision price with what you actually achieved. Learn the formula and its parts.