Economy
Prop Trading Jobs and Salary Insights For 2023 By Traders Union Team
Proprietary trading firms, often called prop firms, are businesses that give money to traders. In such a way they can trade things like stocks, Forex, futures, and options. If you really like trading and want to work in the fast world of financial markets, prop trading can be an exciting option. Traders Union (TU) experts have provided a comprehensive article. They explained about prop trading jobs and salary.
Finding the best jobs in proprietary trading
TU’s analysts consider that the best prop trading jobs depend on your skills and experience. Prop trading firms look for traders with a strong trading background, often in specific markets.
- Equity traders – they buy and sell stocks and other equity securities using various strategies.
- Forex traders – they focus on trading currencies in the foreign exchange market, using different approaches.
- Futures traders – they trade futures contracts tied to commodities, indices, or interest rates.
- Options traders – they deal with options contracts, which give the right to buy or sell assets at specific prices and dates, using various strategies.
Is prop trading right for me?
To determine if a prop trading job is right for you, it’s essential to understand the key aspects of this role. In prop trading, it’s more like a partnership than a traditional job. You must excel at making profitable trading decisions, and a significant portion of your income is tied to trading success. Experts at Traders Union outline the pros and cons.
Pros:
- Access to capital
Prop trading firms provide funding for traders, enabling access to more opportunities.
- Trading support
These firms offer advanced tools and support, aiding informed decision-making.
- Profit potential
Profit-sharing arrangements can yield substantial income for successful traders.
- Networking
Working in a prop firm fosters valuable industry connections and collaboration.
Cons:
- Risk management
Strict policies may limit risk-taking and trading strategies.
- Profit sharing
Traders share profits with the firm, reducing personal earnings.
- Market restrictions
Some firms limit the markets traders can access.
- Performance pressure
Prop trading can be high-pressure, with constant evaluation and competition.
Steps to start a career as a prop trader
Becoming a prop trader is challenging but achievable with a strategic approach, as recommended by TU’s experts:
- Learn market trading – understand different markets, trends, and influencing factors. Study technical and economic aspects, and develop entry and exit strategies.
- Start personal trading – begin trading with your own account to refine your skills and demonstrate your talent.
- Find a reputable prop firm – research established prop trading firms or respected investment banks. Consider earning a bachelor’s degree if possible. Apply and go through their application process, which may include an internship.
- Apply for funded programs – some remote trading firms offer funded trading programs. Apply by providing your background, education, and trading experience.
- Prepare for interviews – expect interviews about your trading skills, experience, markets of interest, and strategies.
- Consider key factors – evaluate factors like account size, profit-sharing terms, available platforms, tools, and monthly fees charged by the prop firm when deciding to become a proprietary trader.
Earning potential for a proprietary trader
Traders Union analysts noted that in prop trading, earnings depend on profit-sharing agreements, which can vary. Many prop firms offer good profit splits, like 80% for traders. Some have tiered structures, where the trader gets 100% of the first $5,000 in profits and 90% afterwards. Fidelcrest, for instance, offers a 50% split initially, but funded traders can earn up to 90/100. TopStep lets traders withdraw the first $5,000 in winnings and offers a 90% split for later gains. It’s essential to know that profitability can differ between firms, but some, like TopStep and Fidelcrest, offer coaching, large accounts, and profit splits up to 90% for potential profits.
Conclusion
The best prop trading jobs depend on your skills and interests, with various roles like equity traders, Forex traders, futures traders, and options traders to choose from. To determine if prop trading is right for you, understand its pros and cons, including access to capital, trading support, profit potential, networking opportunities, but also risk management, profit sharing, market restrictions, and performance pressure.
By Adedapo Adesanya
The duo of Geo-Fluids Plc and Afriland Properties Plc propelled the NASD Over-the-Counter (OTC) Securities Exchange up 0.13 per cent on Friday, January 10.
Investors gained N1.4 billion during the trading session after the market capitalisation of the bourse ended at N1.053 trillion compared with the previous day’s N1.052 trillion, and the NASD Unlisted Security Index (NSI) increased at the close of business by 4.07 points to wrap the session at 3,073.93 points compared with 3,069.86 points recorded at the previous session.
Geo-Fluids added 25 Kobo to its value to close at N4.85 per unit compared with the previous session’s N4.60 per unit, and Afriland Properties Plc gained 24 Kobo to close at N16.25 per share versus Thursday’s closing price of N16.01 per share.
There was a 35.4 per cent fall in the volume of securities traded in the session as investors exchanged 4.3 million units compared to 6.6 million units traded in the preceding session, the value of shares traded yesterday went down by 37.4 per cent to N17.2 million from the N27.5 million recorded a day earlier, and the number of deals decreased by 47.2 per cent to 19 deals from the 36 deals recorded in the preceding day.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 1.9 million units worth N74.2 million, followed by 11 Plc with 12,963 units valued at N3.2 million, and Industrial and General Insurance (IGI )Plc with 10.7 million units sold for N2.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 10.6 million units sold for N2.1 million, trailed by FrieslandCampina Wamco Nigeria Plc with 1.9 million units valued at N74.2 million, and Acorn Petroleum Plc with 1.2 million units worth N1.9 million.
By Adedapo Adesanya
The Naira witnessed a depreciation on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, January 10.
According to data from the FMDQ Exchange, the local currency weakened against the greenback yesterday by 0.12 per cent or N1.80 to sell for N1,543.03/$1 compared with the preceding day’s N1,541.23/$1.
The pressure on the domestic currency came as the access granted to the Bureaux de Change (BDC) operators by the Central Bank of Nigeria (CBN) to purchase FX from the official market through the Electronic Foreign Exchange Matching System (EFEMS) platform prepares to end next week, precisely on January 19.
The CBN had given a 42-day window to the operators to access the platform to help stabilise the Naira in December, and this expires next week.
On Friday, the Nigerian currency tumbled against the Pound Sterling in the official market by N30.78 to sell for N1,889.29/£1 compared with the previous day’s N1,858.51/£1, but gained N5.48 against the Euro to finish at N1,583.81/€1, in contrast to Thursday’s rate of N1,589.29/€1.
As for the parallel market, the Nigerian Naira remained stable against the US Dollar during the trading session at N1,650/$1, according to data obtained by Business Post.
In the cryptocurrency market, it was bearish as the US economy added 256,000 jobs last month, the Bureau of Labor Statistics reported on Friday, topping forecasts for 160,000 and up from 212,000 in November (revised from an originally reported 227,000).
However, the readings came after a number of recent economic reports triggered a broad-market pullback across asset classes such as crypto as investors quickly scaled back the idea of a continued series of Federal Reserve rate cuts in 2025.
Cardano (ADA) fell by 3.6 per cent to trade at $0.921, Solana (SOL) slumped by 2.8 per cent to $185.93, Ethereum (ETH) depreciated by 1.4 per cent to $3,233.27, Litecoin (LTC) lost 1.3 per cent to finish at $103.62, Dogecoin (DOGE) shed 0.5 per cent to sell at $0.3315, Bitcoin (BTC), waned by 0.2 per cent to $94,154.43, and Binance Coin (BNB) went south by 0.1 per cent to $693.30.
On the flip side, Ripple (XRP) jumped by 1.5 per cent to settle at $2.34, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) sold flat at $1.00 each.
By Dipo Olowookere
Profit-takers took control of Customs Street on Friday, plunging it by 0.08 per cent at the close of trading activities.
The sell-offs were across all the key sectors of the Nigerian Exchange (NGX) Limited on last trading session of the week.
The insurance space went down by 1.53 per cent, the banking index depreciated by 0.41 per cent, the consumer goods sector weakened by 0.16 per cent, and the energy counter slumped by 0.08 per cent, while the industrial goods sector closed flat.
At the close of business, the All-Share Index (ASI) tumbled by 79.68 points to 105,451.06 points from 105,530.74 points and the market capitalisation retreated by N48 billion to N64.303 trillion from N64.351 trillion.
Yesterday, investors traded 1.5 billion shares worth N19.4 billion in 12,877 deals compared with the 489.5 million shares worth N13.1 billion transacted in 13,010 deals in the preceding day, indicating a decline in the number of deals by 1.02 deals and a rise in the trading volume and value by 203.14 per cent and 48.09 per cent, respectively.
Wema Bank was the busiest stock with 976.2 million units valued at N9.8 billion, Tantalizers traded 53.0 million units worth 129.6 million, Universal Insurance sold 34.8 million units for N26.8 million, Access Holdings exchanged 33.9 million units valued at N843.8 million, and Nigerian Breweries traded 27.3 million units worth N873.3 million.
The heaviest loss was suffered by Sunu Assurances with a decline of 9.99 per cent to trade at N7.30, Eunisell shed 9.96 per cent to N17.35, SAHCO crumbled by 9.87 per cent to N30.15, DAAR Communications plunged by 9.28 per cent to 88 Kobo, and Sovereign Trust Insurance went down by 7.04 per cent to N1.32.
On the flip side, C&I Leasing gained 10.00 per cent to close at N4.51, Honeywell Flour appreciated by 9.99 per cent to N10.02, Trans Nationwide Express jumped by 9.89 per cent to N2.00, RT Briscoe rose by 9.83 per cent to N2.57, and Secure Electronic Technology grew by 9.46 per cent to 81 Kobo.
Business Post reports that the bourse ended with 33 price gainers and 25 price losers, indicating a positive market breadth index and strong investor sentiment.
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