Trader, Derivatives Salary
A Trader, Derivatives earns an average salary of $77,086 per year. People in this job generally don't have more than 20 years' experience. Experience has a moderate effect on income for this job.
Job Description for Trader, Derivatives
Traders of derivatives are specialized stock traders; however, rather than working with actual stocks, derivatives traders work with items that derive their value from the investment form on which they are based. These can include stock derivatives, like futures contracts, debt and interest rate-based derivatives, physical commodities like energy contracts and farm-produced products, and derivatives based on the movement of foreign exchange rates and how those rates affect other investment products.Read More...
Derivatives traders make trades in the appropriate markets, and many specialize in a central area. They are responsible for making trades in these markets to produce the most income and value, whether selling derivatives or buying them, and they also regularly review analysts' reports and communicate with other brokers, analysts, and clients. They often work long hours trading and keeping up with their markets.
Those in this position generally work from an office of their employer, which can range from large brokerage houses, banks, and other financial institutions to exchange markets and small investment firms. Regardless of where they are employed, they often take work home with them and may also travel on occasion to meet with a client or other firm with which they do business.
Aside from derivatives traders who are employed as attorneys or certified public accountants, nearly all derivatives traders have at least a bachelor’s degree in business. Higher degrees are commonplace, and master's degrees may lead to greater employment opportunities. In all cases, keeping up with market developments, legal requirements, and changes in investment products and strategies are crucial to success.
Trader, Derivatives Tasks
- Identify, track, and monitor risk factors for a trading portfolio.
- Communicate forecasts and opinions to work with clients and peers.
- Increase the value of the portfolio with timely decisions and informed choices.