Yeah, most trader jobs will be automated in the future except these who are profitable. When come to efficient, nothing beat machines. They can work and follow the guideline 24 hrs and 7 days a week non-stop. Goldman laid off 600 traders last year. Barclay laid off couple thousand traders too. They replaced them with machines. If you are profitable, they will keep you for a while though. When they automate your strategy and you don't come up new profitable strategy is the time they let you go.
In both cases, these were equity sales-traders - emphasis on “sales”. Most people now know how to use their broker front-end tools and do not need a monkey to answer the telephone. I have not spoken to my equity coverage person like ever and don’t see a reason too. People who are doing actual risk management (anything, from block trades and index arb to managing books of exotic options) are still there. That’s what one would call “real trading” at a bank and it’s atill around. They are getting paid less though, for various reasons.
In 1980 Merrill Lynch had about 1500 people working the floors in Chicago. 18 badges on the CBOE alone. I doubt they have more than 25 people in the Chicago trading group today. Technology changed everything and the world evolved with some pain. None the less there are still plenty of opportunities and there isn't a shop in the world that wouldn't hire a talented person. @Moon is 22 and looking for a job and he should not listen to anyone telling him the business is doomed. The industry was doomed in 1973 - doomed in 1987 - doomed in 1989 - doomed in 2008. Every segment was doomed at some point and doomed the next time we correct - yet we are all still here. I'm not near a Bloomberg, but I'd bet there are hundreds of positions worldwide with a ton around NYC. Mutual funds were doomed in the late 70s Option doomed in 87 Metals in 80 Converts every year I've been in the business Hedge funds are currently being diagnosed as doomed Fixed Income will be doomed when the Fed bumps rates Yet we are all still here. There have been dislocations and pain from evolution. We didn't trade Volatility products a decade ago - what shop doesn't have a volatility desk today? Apple was dead in the 90s and what the hell was an ETF back then?
Dude, volatility products are dead - it’s all about crypto now @Moon - a few questions - what exactly do you want to do? - why specifically options trading? - do you program and in what language(s)? - give a brief list of your coursework?
Don't have a crypto group on my desk, but then again we still trade convert arb. Guess we're dinosaurs!
I was gonna say something witty about convertible bonds but iPhone did it for me: “covert barn” Worth saving for posterity together with stab art (stat arb) and vile Arab (vol arb).
Of course it does. In fact, I do some covert barn business myself (outside of the US, cause that’s where the juice is).
Actually, mostly in Asia. At my previous gig, I did some convertible-issuance related things in the US, but there is only that much I can do as a one-man band.