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| *Ostroff, Fair and Company>>>Financial Services |
Equity Trading w/o capital contribution?? |
I am a new arrival to NY and a recent college graduate. I am really interested in getting a job in equity trading, however many companies require a capital contribution to work there. Do you know of any companies that does not require any $$$$$ to work for them as trader??? What qualifications/skills do they look for?? Equity means :- EQUITY - 1. Stock or any other security representing an ownership interest. 2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity". 3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage. 4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. 5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio. Hence capital in terms of money only is not required for Equity Trading The major investment banks, Goldman Sachs, Morgan Stanley, UBS, etc all employ equity traders. These traders mainly act as market makers for the bank's clients nut some experienced and good traders engage in proprietary trading using the bank's capital. Traders at investment banks have proper training and full support of the organization. They are employees and are not expected to pay to trade, they are expected to make money for the bank. In return they are paid handsome salaries and bonuses. Hedge funds and other asset managers function as larger versions of investment bank proprietary trading desk. These will not take on fresh graduates and recruit from experienced traders from the banks. If you want to become an equity trader apply to one of the banks, but I must warn you that it is very, very very competitive and they only take the best candidates. Top academics from a top university, the ability to think quickly and under pressure, mathematical ability, confidence, knowledge of finance and in most cases an internship at a bank are what they are looking for. I think what you have encountered is a trading arcade. Essentially you are paying to use their infrastructure. I wouldn't really recommend them. In many cases they are just exploiting people's hope of being a trader. Banks look down on them so it can severely affect your chance to get a job at an investment bank if you change your mind later. You generally get less support and training. Furthermore you are often restricted to day trading as you can't hold trades overnights. Name one really successful day trader. Ignore people who claim they have made loads doing it. If they were doing so consistently, more professional traders would bother with it. In most cases with day trading gains one day are wiped out soon after. Also these trading arcade allow you to leverage quite a bit. You could end up borrowing a lot and so find yourself in much more trouble than you realise. See http://www2.goldmansachs.com/careers/ins... http://www.morganstanley.com/about/caree... http://www.db.com/careers/en/558.html... http://careers.ml.com/?id=76716_79332_76... google investment bank for more employers |
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