Is there any future working as a futures or derivatives trader? What are the risk involved?

Question

I am currently a fresh graduate with an economics degree. I couldn't decide which job offer to accept, the tough choice is between working for a well known international bank in the consumer or corporate banking department, or to train as a futures and derivatives trader with a small firm. The reward from the futures and derivatives trader position is fantastic but i understand there's a high amount of risk involved as well, therefore high risk-reward position.

Answer 1

Trader trainee jobs are highly desirable and hard to come by. If somebody is actually offering you a job as a trader trainee, then go for it! This is a fantastic opportunity. There is, of course, the risk that you won't be an good at at and they will let you go, but that's true with any job. Then you can look for other trading jobs, as well as jobs where a trading background is required. If you are good at it, the bonuses are huge. Don't be put off by it being a small firm. This is a business full of niche firms that nobody has ever heard of outside the business because general image advertising does them no good, unlike banks and brokers that do retail business. The risks that you have heard of with a career in trading refer to the risks of trading your own money. As an employee, you will be trading the firm's money or investment money managed by the firm. You get to learn by trading other people's money. This is why these are great jobs and hard to come by.

Answer 2

there is a future in futures, but it's quite risky. Basically you're acting as a psychic depending on how peoples' fear and greed determine a futures price. Many brokerage firms will not let you offer futures until you are few years in the business and usually the high net worth clients are those who have futures in their portfolios. I would personally do the banking side because there are so many banks around, so many being started, and so many being acquired. There is a tremendous amount of opportunity in banking.

Another thing to think about....would you want to be a small fish in a big pond like you would be in that bank, or would you want to be a big fish in a small pond like the small firm? That's a pretty important decision.

Either way, you have some good opportunities ahead of you, but think about your short term goal and your long term plan.

Banking= many choices besides just being in a branch
Small firm= limiting yourself to only doing one thing

Answer 3

Sure there are risks in the futures market but whose money is at risk? The firm's $ right? They are not going to have you throwing their money out the window--they would be out of business. So they will show you how to make money in the markets. Soon enough you'll be making big money on your own as well as for the company. Its a lot more exciting and interesting. Do you have a chance to make bonuses for reaching financial goals for them? That will drive you to understand whats going on fairly quickly. I took four economics classes in college and I would go with the trading offer hands down!

Answer 4

Of course futures & derivatives HAVE a future, but if you think about it, it may not be that bright a future in the near to mid-term.... A huge chunk of boomers are set to retire over the next 10-15 years, and few of them have saved enough. Fiscally, they are not "risk-takers". When they sober-up/straighten up long enough to see that bonds are not going to earn them enough, they will turn to stocks...but anything they have not heard of, or do not understand, they will not buy.

So I think we will see them flock to the Dow stocks producing a steady, predictable, conservative rate of growth in the DJIA for the next 10-15 years, probably 8-10%, somewhat below the historical average rate.


This will not make for great gains in futures or derivatives

Answer 5

Derivative and hedge funds are dropping like flies as the underlying adjustable rate mortgages head majorly South due to alot of repossessions and walk-aways! The Idea that you can package high risk items into a package that will have a lower risk is falacious. When it's time to sell you may find you have nothing to sell and no one to sell to! Stay out! Other wise you'll lose your shirt.

Answer 6

try at first, then seen what is the risk..