I'm thinking of becoming a market maker. Already passed some obligated arithmetic and iq-tests. Still have a few questions though.. How specialised will you be after a few years. I mean, how difficult is it to switch job after six years (to the tradingfloor of a bank, for instance)? I'm living in the neighboorhood of Belgium. What are the best option houses in this aera? I think it are Optiver, IMC, Saen, Van der Moolen.. What do you guys think of these firms? And what are the biggest of the world? Any expierence in general with this profession/ company's? I than mean compensation packages (bonusses, salary). Thx in advance. It will help me decide the direction of my career.
George Soros says the only true education in trading is to first learn how to become a market maker. I guess you learn how the true dynamics of a market work and how buyers and sellers actually interact as opposed to looking for head and shoulders and 38.5 fibbonaci retracements which I (and George Soros) believe to be the equivalent of economic horoscopese!! He's made billons from trading so there must be some truth from what he's saying?
Kareltje, the MM's you mention are, although operating international, especially big on their 'home' market (Euronext/Eurex). There are way bigger MM's but they don't operate out of Amsterdam/Holland so if you are looking for a MM job in Holland Optiver, IMC and Alloptions are to my opinion the ones to go for. If you would consider moving to London or elsewhere you could also check MAKO, Citadel, HULL and TimberHill to name a few. As far as being concerned for being able to switch after a few years to for example a bank I can tell you: If you are good it is possible, but then again if you are good you don't need to anymore after 6 or 8 years nor would you want to. If you are not good it will be difficult. Good luck
Hey m8 do you mind to ellaborate a little more on the arithmetic and iq tests you had to take {how high did you score on the iq? for instance, and what level of arithmetic where you requiered to dominate?} What other requirements do these banks look for when hiring a MM? thanks for any replies.
Well, I had one arithmetic test of 80 questions you had to answer in 8 minutes. You just must be fast. They didn't exactly say required score to pass, but I think it was somewhere around 50 (for any mistake they deduct 2 points). Then you have a sequence test and a figures test. But the tests are different for different companies. I know an other market maker firm, which dont have the 80 sums in 8 minutes test, but a lot of other different tests (and a simulation). And then you just have to pass all the tests.... Personality is an other important requirement. You really must like to win and be a driven person... But I also dont know it exactly...
being a market maker in OTC derivatives is very lucrative. The more exotic/complex/opaque the better. being a market maker for exchange traded securities means changing some parameters on a quote-streaming automated system. IMO, a clerk