Trading Careers Explained
A map of trading careers: traders, quants, developers, portfolio managers, risk and operations. Learn what each role does and the skills it needs.
Trading is not one job but a family of careers. Some people trade a firm's capital, some build the systems that trade, some research strategies with statistics, some manage portfolios and others manage the risk and operations that keep everything running. Employers range from investment banks and hedge funds to electronic trading firms, asset managers, exchanges and crypto companies. There is also the independent path of trading your own money. Each route needs different skills and suits different personalities.
The main roles#
| Role | What they do | Key skills | Lesson |
|---|---|---|---|
| Prop trader | Trades a firm's capital | Quick decisions, risk discipline, market intuition | Prop Trader |
| Quant trader and researcher | Develops and runs systematic strategies | Statistics, programming, research | Quant Trader and Quant Researcher |
| Quant developer | Builds trading systems and infrastructure | Software engineering, low latency systems | Quant Developer and Trading Engineer |
| Portfolio manager | Makes investment decisions for a fund | Judgement, research, risk management | Portfolio Manager |
| Execution and sales trader | Executes orders and serves clients | Market structure, communication | Execution and Sales Trader |
| Market maker and options trader | Quotes prices and manages inventory | Probability, pricing, speed | Market Maker and Options Trader |
| FX, rates, credit and commodity trader | Trades specific macro asset classes | Macro knowledge, product expertise | FX, Rates, Credit and Commodity Traders |
| Risk analyst | Measures and controls risk | Statistics, independence, communication | Risk Analyst |
| Operations | Settlement, reconciliation, accounting | Accuracy, process, systems | Trade Accounting and Reconciliation |
| Independent trader | Trades personal capital | Self discipline, capital, risk control | Becoming a Retail or Day Trader |
Where people work#
| Employer | Typical roles |
|---|---|
| Investment banks | Sales, trading, structuring, research, risk |
| Hedge funds | Portfolio managers, analysts, quants, traders |
| Electronic trading and market making firms | Traders, quant researchers, engineers |
| Asset managers | Portfolio managers, analysts, buy side traders |
| Exchanges and venues | Market operations, technology, surveillance |
| Crypto firms | Trading, market making, engineering, risk |
| Regulators | Surveillance, policy, enforcement. See Trading Regulators: SEC, CFTC, FINRA and NFA |
Skills employers look for#
| Skill | Why it matters |
|---|---|
| Probability and statistics | Core to pricing, risk and research. See Probability for Traders |
| Programming (Python, C++) | Needed in nearly every modern trading role. See Python for Trading |
| Mental arithmetic and estimation | Tested in many trading interviews |
| Market knowledge | Understanding products and how markets work. See Market Basics |
| Risk discipline | Controlling losses matters more than any single win. See Discipline |
| Communication | Explaining ideas and working under pressure |
How people get hired#
- Internships at banks and trading firms, often recruited a year or more ahead.
- Graduate programs with rotations across desks.
- Quantitative degrees such as maths, physics, computer science, engineering or statistics, which are common for quant and market making roles.
- Interviews that test probability puzzles, mental maths, coding and market sense.
- Lateral moves from related roles, such as from the sell side to the buy side.
Is a trading career right for you?#
Trading roles reward people who enjoy fast feedback, handle losses calmly, think in probabilities and keep learning as markets change. They can be stressful, competitive and cyclical, with jobs tied to market conditions and firm performance. Paper trading and studying markets is a good way to test your interest before committing. See Paper Trading and Skill Development and Progress Tracking.
Frequently asked questions#
What degree do you need for a trading career?#
Many traders have degrees in maths, economics, engineering, physics, computer science or finance, though the right skills and interview performance matter most.
What is the difference between a trader and a quant?#
Traders make or execute trading decisions; quants build models and systematic strategies, though the roles overlap at many firms.
Can you become a trader without working at a firm?#
Yes, by trading your own capital, but independent trading has no salary, requires capital and is difficult to do profitably.
Next, learn what independent trading really involves in Becoming a Retail or Day Trader.
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Mentioned in
- Proprietary TradingThe Trading Industry
- Buy Side vs Sell SideThe Trading Industry
- Trading DesksThe Trading Industry
- Market Maker and Options TraderThe Trading Industry
- FX, Rates, Credit and Commodity TradersThe Trading Industry