Describing a trader's responsibilities
Question
How would you describe what a trader actually does day to day?
Short answer
Describe the role realistically. A trader makes markets or takes positions, prices and executes trades, manages risk within limits, reacts to news and flow, and works with sales, quants and risk; the day runs from pre-market preparation to end-of-day risk and P&L. Distinguish market making from proprietary or flow trading to show depth.
Adapted from Crack, Heard on the Street, Q5.2.17, p.49; question and answer rewritten by SelfMadeQuant.com.
See the hint and the full worked solution in the question bank (free account).
Open the worked solution