If you are considering a career in finance, as many fresh B.Com, BBA & MBA graduates do, and all you have found are placements in the Financial Services sector, then maybe you have not considered a very large area of finance – the Capital Market.

Opportunities in core finance careers in the Capital market are innumerable – ranging from analysis & trading of different asset classes to brokerage to investment banking & private equity. The jobs with no front end involvement are those of Analysts & Traders. Of them the most lucrative is that of a Trader.

Not many are aware, but trading can be pursued as a full time career and not as a mere part time investment opportunity.

Two factors which create significant opportunities for traders are Volumes on major exchanges across the asset classes viz equity, commodity and currencies, which have more than doubled in the last 2 years, and increased number of instruments and contracts available for trading in the Indian capital markets.

What kinds of Trading Careers are available?

There are many kinds of trading – starting at arbitrage & jobbing and escalating to Options & Multi-Asset trading with opportunities in Spreads, Options, Momentum & Technical Trading lying in between. With a market capitalization of over 67 Trillion rupees – and growing – there are great opportunities in the Indian Markets. Not many are aware, but trading can be pursued as a full time career and not as a mere part time investment opportunity.

Two factors which create significant opportunities for traders are Volumes on major exchanges across the asset classes viz equity, commodity and currencies, which have more than doubled in the last 2 years, and increased number of instruments and contracts available for trading in the Indian capital markets.

What you need to become a Trader?

Trading is a career meant for highly self motivated individuals who are capable of analyzing and acting upon information at a rapid pace – daily fluctuations in prices can cause severe changes in fortune. Traders need to be able to work successfully independently with little supervision. If they are unable to, they find themselves out of a job. It is possible to become an independent trader, provided you have the knowhow and necessary tools – capital, a terminal & analysis software.

How to get started in a Trading Career?

There are few, if any, recognized institutions in India which provide formal education on the trading profession. The basics of capital markets are taught, however, proper instruction on trading and analyzing securities, commodities & currencies are neglected. The lack is made up by institutions hiring graduates, engineers & MBAs as traders and then spending thousands of rupees training them to do the job they were hired for.

The other option – if you are not hired right out of college for a trading position – you can consider doing a certified professional trading course and subsequently seek trading position with any of the proprietary trading firms.

What is the Career Path of a Trader?

The basic job doesn’t change – traders are supposed to develop their skills and use their experience to generate higher profits in trading. Career paths for traders consist of expanding on 3 successive levels –

  • Volume of Exposure – capital amount available to a trader for usage
  • Strategies Utilized –Jobbing, view based spread trading, technical analysis, Option trading, Greeks trading, Multi Asset Trading
  • Asset Classes – equities, commodities, currencies & derivatives

Is this the right career for you?

After receiving all the details of trading as a career, the last thing you must gauge is if trading is the career for you. If you enjoy a fast paced work environment, being independent & fast in your decision making, have a good head for numbers and like creating opportunities for yourself then trading might be a perfect fit for you.

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