What does a FX trader working for a large investment bank do on a daily basis?

i understand what a prop trader does, but i am unsure about what a trader would do if they are working with products like options, do they structure the product for a company, or do they price the product, and if so, where is the skill in that?, how do they make the company money when dealing with products derived from the FX market.

An FX trader at a large investment bank may be working on:

1) Hedging: Matching companies or individuales interested in locking in current rates in their "base or reporting" currency with other parties who want to proceed likewise in the opposite currency. By matching demand with offer they get a commission, gained via rate difference offered to the customers in their contracts.

2) Speculative trading: Monitoring FX rates as they fluctutate during the day. Aided by multiple economic measures, research, and recent news, they are able to anticipate which currency will fall or rise and establish positions based on this (short or long position). Short position if they expect the purchased currency to fall and long position if expected to rise. This kind of trading is highly risky and requires much economic insight as well as second-by-second monitoring of the market.

buy and sell currencies with lots of luck.

Tags

　　Investment Group 　　Investment Firms 　　Investment Company 　　Investment Calculator 　　Investment Bank 　　Investment Advice 　　Investment Account 　　Invest Money 　　Invest in Gold

Related information

Why would you want to work in a corporate investment bank?

Personally, I wouldn't. But if I did, it'd be for the remuneration and cocaine. And my sensible answer would be for the security, the opportunity to advance through the company, and the r...

Why does a company need an investment bank to do an IPO?

They could but its unlikely that they'd find a lot the type of purchasers that would buy the necessary number of shares to sustain a significant offering. In addition, you normally want the s...

Can you earn 250k working in investment bank at age 24?

Not with the brains that said "I bet Yahoo Answers is a good way to find out" to that question. Now, if you had something better going on upstairs you would know the answer to this que...

Any secret to getting an internship at a premium investment bank?

You need to hire one of those hot-shot consultants who groom and polish you and "sell" to you the contacts that can put your foot in the door. All for a price of course. But business sc...

What is it like to work for an Investment Bank?

Operations analyst could mean anything and depends on the company, but it's probably more or less an 8-5 job like every other financial analyst job. Investment banking on the other hand i...

If I want to work for a major investment bank what should I major in?

If you want to get in as a "target" candidate, then preference is for a business, finance, economics major. But your major choice is only part of it, they are looking for grades, demon...

What is a good entry role into an investment bank?

You really are lucky if the bank is asking you to define your own job ! Most places they decide what the jobs are in advance and then recruit people to fit those vacancies.

...

Outside of the corporate tax department at an investment bank, who might also need tax information?

Quite often, lenders and others interested in your (or your companies) financial soundness are NOT really looking for tax information. It's just that the tax forms that are already completed ...