# 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.

Source: https://learn.tradelabsai.com/industry/trading-careers-explained/  
Track: The Trading Industry · Level: Intermediate · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Trading Careers Explained", https://learn.tradelabsai.com/industry/trading-careers-explained/

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](https://learn.tradelabsai.com/industry/prop-trader/) |
| Quant trader and researcher | Develops and runs systematic strategies | Statistics, programming, research | [Quant Trader and Quant Researcher](https://learn.tradelabsai.com/industry/quant-trader/) |
| Quant developer | Builds trading systems and infrastructure | Software engineering, low latency systems | [Quant Developer and Trading Engineer](https://learn.tradelabsai.com/industry/quant-developer/) |
| Portfolio manager | Makes investment decisions for a fund | Judgement, research, risk management | [Portfolio Manager](https://learn.tradelabsai.com/industry/portfolio-manager/) |
| Execution and sales trader | Executes orders and serves clients | Market structure, communication | [Execution and Sales Trader](https://learn.tradelabsai.com/industry/execution-and-sales-trader/) |
| Market maker and options trader | Quotes prices and manages inventory | Probability, pricing, speed | [Market Maker and Options Trader](https://learn.tradelabsai.com/industry/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](https://learn.tradelabsai.com/industry/fx-and-rates-traders/) |
| Risk analyst | Measures and controls risk | Statistics, independence, communication | [Risk Analyst](https://learn.tradelabsai.com/industry/risk-analyst/) |
| Operations | Settlement, reconciliation, accounting | Accuracy, process, systems | [Trade Accounting and Reconciliation](https://learn.tradelabsai.com/industry/trade-reconciliation/) |
| Independent trader | Trades personal capital | Self discipline, capital, risk control | [Becoming a Retail or Day Trader](https://learn.tradelabsai.com/industry/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](https://learn.tradelabsai.com/industry/trading-regulators/) |

## Skills employers look for

| Skill | Why it matters |
|---|---|
| Probability and statistics | Core to pricing, risk and research. See [Probability for Traders](https://learn.tradelabsai.com/math/probability-for-traders/) |
| Programming (Python, C++) | Needed in nearly every modern trading role. See [Python for Trading](https://learn.tradelabsai.com/programming/python-for-trading/) |
| Mental arithmetic and estimation | Tested in many trading interviews |
| Market knowledge | Understanding products and how markets work. See [Market Basics](https://learn.tradelabsai.com/markets/market-basics/) |
| Risk discipline | Controlling losses matters more than any single win. See [Discipline](https://learn.tradelabsai.com/psychology/discipline/) |
| Communication | Explaining ideas and working under pressure |

## How people get hired

1. **Internships** at banks and trading firms, often recruited a year or more ahead.
2. **Graduate programs** with rotations across desks.
3. **Quantitative degrees** such as maths, physics, computer science, engineering or statistics, which are common for quant and market making roles.
4. **Interviews** that test probability puzzles, mental maths, coding and market sense.
5. **Lateral moves** from related roles, such as from the sell side to the buy side.

**Example: A typical trading interview question**
An interviewer asks: "You roll a fair six sided die and receive dollars equal to the number shown. What would you pay to play?" The expected value is the average of 1 to 6, which is 3.5 dollars, so a fair price is $3.50. A follow up asks: "You may roll once more if you dislike the first roll. Now what is it worth?" You would reroll on 1, 2 or 3, since the expected value of a new roll, 3.5, is higher. The game is then worth half times 3.5 (for rerolls) plus half times 5 (the average of 4, 5 and 6), which is 4.25 dollars. Questions like this test expected value thinking, a core trading skill. See [Expected Value](https://learn.tradelabsai.com/math/expected-value/).

## 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](https://learn.tradelabsai.com/start-here/paper-trading/) and [Skill Development and Progress Tracking](https://learn.tradelabsai.com/start-here/trading-skill-development/).

## 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](https://learn.tradelabsai.com/industry/becoming-a-retail-or-day-trader/).

## Continue learning

- Next lesson: [Becoming a Retail or Day Trader](https://learn.tradelabsai.com/industry/becoming-a-retail-or-day-trader/)
- Previous lesson: [Trading Desks](https://learn.tradelabsai.com/industry/trading-desks/)
- 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: [Becoming a Retail or Day Trader](https://learn.tradelabsai.com/industry/becoming-a-retail-or-day-trader/): What it really takes to trade your own money: the evidence on day trader results, capital needs, costs, a realistic learning path and warning signs to watch.
- Related: [Prop Trader](https://learn.tradelabsai.com/industry/prop-trader/): What a prop trader does, how professional prop firms hire and train, how retail funded accounts work, typical rules and how to judge if it suits you.
- Related: [Quant Trader and Quant Researcher](https://learn.tradelabsai.com/industry/quant-trader/): What quant traders and quant researchers do, the skills and education firms look for, a typical research workflow, interviews and how the two roles differ.
- Related: [Quant Developer and Trading Engineer](https://learn.tradelabsai.com/industry/quant-developer/): Quant developers and trading engineers build the systems that research, price and trade. Learn the main roles, technical skills, interviews and how to prepare.
- 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.