Andreas joined Bank of America's graduate programme in June last year after completing an MSc in economics and finance at the Stockholm School of Economics. After a six-week introduction course and two weeks of studying for his regulatory exams, he took up his current position on the rates trading desk.
What does your role involve?
Mostly quoting prices to clients, executing trades and managing risk. I also take proprietary positions where I see opportunities in the market. The size of the trades varies a lot depending on the type of product, whether it is a client or proprietary trade and market conditions. A lot of time is also spent finding and analysing information by following the news being published, talking to brokers and so on.
Can you describe a typical day?
I usually arrive shortly after 6:30am to read up on overnight news and market developments. I then re-evaluate my positions and decide if anything needs to be changed. On a busy day, the rest of the time is spent executing and hedging trades while trying to identify opportunities for proprietary positions. On a slow day I spend a lot of time reading research reports and discussing trade ideas with my colleagues. If the market has been quiet, I usually leave around 5:30pm, but after a busy day there might be a backlog of admin to do.
Why did you choose your division, as opposed to, say, corporate finance?
I was attracted to the everyday excitement and challenge of the market and the fact that no two days are the same. Decisions must often be made in a matter of seconds but you still always have to be mindful of how they will affect your relations with clients and brokers in the long run.
What kind of person do you need to be to excel in this role?
You need to be able to think rationally and perform well under pressure. You must also be able to process and analyse information quickly and be confident enough to make fast decisions based on this analysis. Numeric skills and an understanding of the economy as a whole are also important.
Andreas' tips
- Plan your trades and be disciplined. When important data is released, it can get hectic and, if you do not have a well thought through plan, mistakes can easily be made.
- Never allow yourself to get emotional about a trade. Always base your decisions solely on rational risk/reward calculations.
- Learn about the markets. Make sure you follow current developments and read business newspapers.
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