What is a bond trader?

A bond trader’s job is to execute over-the-counter (OTC) and listed bond trades on behalf of their clients. They act as an intermediary between buyers and sellers of debt securities, while keeping the identities of those involved in the transaction anonymous.

How much do bond traders make?

The salaries of Bond Traders in the US range from $32,680 to $786,719 , with a median salary of $199,088 . The middle 57% of Bond Traders makes between $199,088 and $394,388, with the top 86% making $786,719.

How does trading a bond work?

Bonds trade anywhere that a buyer and seller can strike a deal. Unlike publicly-traded stocks, there’s no central place or exchange for bond trading. The bond market is an “over-the-counter” market or OTC market, rather than on a formal exchange.

Where do bond traders work?

Most bond traders are seasoned financial experts who work in bond brokerage firms. Anyone can participate in the bond market in most places, however. The training and approach of different traders can differ widely, but on a basic level, each usually does the same thing.

Is bond trader a good job?

Bond trading is not for everyone. It’s highly stressful and very demanding both emotionally and intellectually. There are times where you feel like you’re the worst trader in the history of capital markets, but if you don’t get too down on yourself too much, you can always find a way to turn things around.

Do bond traders make good money?

Senior bond traders at major banks made an average of $1.3 million in total compensation last year — up 21 percent from 2016 — but 75 percent thought that they were paid unfairly, according to a draft survey by headhunting company Options Group.

Do traders make a lot of money?

If you pay for your charting/trading platform, or exchange entitlements then those fees are added in as well. Therefore, with a decent stock day trading strategy, and $30,000 (leveraged at 4:1), you can make roughly: $7,500 – $2000 = $5,500/month or about a 18% monthly return.

Are bonds a good investment?

If you’re the risk-averse type who truly can’t bear the thought of losing money, bonds might be a more suitable investment for you than stocks. If you’re heavily invested in stocks, bonds are a good way to diversify your portfolio and protect yourself from market volatility.

How do bond traders make money?

Bond traders make money when they take a spread between the bond’s buying price and the selling price. When the buying price is lower than the selling price, they make money. Additionally, coupon payments accrued over time by holding bonds is the other source of income for bond traders.

What makes a good bond trader?

Math skills, quick instincts and creative thinking are key to becoming a great bond trader. A bond trader’s primary responsibility is to make secondary markets to investors. Each bond trader is allocated capital to maintain an inventory of different principled bond positions. Trading is an exciting but stressful job.