Discussion in 'Professional Trading' started by coolcash2004, Aug 2, 2008.

  1. What is the standard amount a trader will earn for making substantial profits on trades? IE: Making a company 30% in one year. Do they get around 1 or 2 percent of that profit?

  2. cszulc


    If it is a hedge fund-type agreement of management, normally 2% is taken from principal and 20% from the profits.

    Structure it however you want, but only 1-2% of the profit is a horrible deal for the trader.
  3. Thanks!

    That sounds like a good deal.

    How much would a hedge fund trader manage in a year on average?
  4. Many hedge funds pay their traders 10% of the profits.

    Be aware that many good hedge funds charge their customers more than the usual 2/20% fees.