Careers in the Derivatives Market 5.00 / 5 (100.00%) 1 vote

If you are looking for a profession that is both enjoyable and rewarding, you may want to consider careers in the derivatives market. The financial derivatives market is estimated to be worth quadrillions of dollars and you could easily get a piece of the action if you know where to start. The following information may give you a head-start in your pursuit.

Employment Opportunities

Careers in the Derivatives Market

Almost every financial institution needs qualified professionals in their trading desks. Some of the most common employers include investment banks, Futures Commission Merchants, regional brokers and dealers of financial derivatives. Alternatively, you can opt for self employment. As an independent trader or licensed Exchange Member, you can help clients to invest in derivatives and other financial instruments for a small fee. However, you must first work for a licensed broker or investment bank and pass Series 3 and Series 7 exams before you can branch out on your own.

Careers in the Derivatives Market

The derivatives market provides job seekers with a number of career opportunities. The following are some of the most popular jobs in the derivatives market

1. Salesperson:  The main responsibility of a salesperson is to bring-in new clients and handle their business. These professionals usually target two types of clients. These are; retail clients and institutional clients. Retail clients are basically speculators who venture into the derivatives market with the aim of profiting from price fluctuations. Institutional clients, on the other hand, use the derivatives market to hedge their portfolio against losses that may result from price increase or decrease.

2. Market Analysis:  In the derivatives market, individuals who can analyze economic indicators and make an accurate prediction can make a lot of money. As an analyst, your job will involve identifying and analyzing the relationships between different factors in the market and write reports. In other words, you will be tasked with analyzing current events and forecasting future events.

3. Derivatives Trading:  As a trader, you will be responsible for the actual buying and selling of financial derivatives. You can do this through an exchange floor or over-the-counter.

4. Back-Office:  Individuals who have an eye for detail are usually hired to work back-office to ensure compliance and carry out due diligence. Accountants and lawyers are often favored for back-office jobs.

Education Requirements

A career in the financial sector of the economy requires at least a degree in business. Depending on your employer, an MBA from a top-tier university may be a requirement. That said, a degree is only an entry requirement. Once youre in, you will require much more than just your education. Your communication stills and street-smartness will get you far.

After you have been hired, you will receive on-the-job training on the derivatives and securities markets. When you are ready, you can do the Series 7 exam, for a general securities trading license. Before you start trading in derivatives, you must pass another exam known as Series 3.

Once you get your degree, it is important that you increase your knowledge of how the derivatives market works to be able to make an informed decision about careers in the derivatives market.