Example Career: Securities and Commodities Traders

Career Description

Buy and sell securities and commodities to transfer debt, capital, or risk. Establish and negotiate unit prices and terms of sale.

What Job Titles Securities and Commodities Traders Might Have

• Broker
• Equity Trader
• Option Trader
• Trader

What Securities and Commodities Traders Do

• Make bids or offers to buy or sell securities.
• Monitor markets or positions.
• Agree on buying or selling prices at optimal levels for clients.
• Buy or sell stocks, bonds, commodity futures, foreign currencies, or other securities on behalf of investment dealers.
• Report all positions or trading results.
• Identify opportunities or develop channels for purchase or sale of securities or commodities.
• Devise trading, option, or hedge strategies.
• Track and analyze factors that affect price movement, such as trade policies, weather conditions, political developments, or supply and demand changes.
• Inform other traders, managers, or customers of market conditions, including volume, price, competition, or dynamics.
• Receive sales order tickets and inspect forms to determine accuracy of information.
• Review securities transactions to ensure conformance to regulations.
• Supervise support staff and ensure proper execution of contracts.
• Develop or maintain supplier or customer relationships.
• Analyze target companies or investment opportunities to inform investment decisions.
• Prepare financial reports, such as reviews of portfolio positions.
• Process paperwork for special orders, including margin or option purchases.
• Report deficiencies in account payments, securities deliveries, or documentation requirements to avoid rule violations.
• Reconcile account-related statements, such as quarterly or annual statements or confirmations.
• Write or sign sales order confirmation forms to record or approve security transactions.
• Identify or pursue investment strategies related to the green economy, including green hedge funds, renewable energy markets, or clean technology investment opportunities.

What Securities and Commodities Traders Should Be Good At

• Oral Comprehension - The ability to listen to and understand information and ideas presented through spoken words and sentences.
• Written Comprehension - The ability to read and understand information and ideas presented in writing.
• Oral Expression - The ability to communicate information and ideas in speaking so others will understand.
• Deductive Reasoning - The ability to apply general rules to specific problems to produce answers that make sense.
• Inductive Reasoning - The ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events).
• Speech Recognition - The ability to identify and understand the speech of another person.
• Problem Sensitivity - The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing there is a problem.
• Speech Clarity - The ability to speak clearly so others can understand you.

What Securities and Commodities Traders Should Be Interested In

• Enterprising - Enterprising occupations frequently involve starting up and carrying out projects. These occupations can involve leading people and making many decisions. Sometimes they require risk taking and often deal with business.
• Conventional - Conventional occupations frequently involve following set procedures and routines. These occupations can include working with data and details more than with ideas. Usually there is a clear line of authority to follow.

What Securities and Commodities Traders Need to Learn

• Economics and Accounting - Knowledge of economic and accounting principles and practices, the financial markets, banking and the analysis and reporting of financial data.
• English Language - Knowledge of the structure and content of the English language including the meaning and spelling of words, rules of composition, and grammar.
• Customer and Personal Service - Knowledge of principles and processes for providing customer and personal services. This includes customer needs assessment, meeting quality standards for services, and evaluation of customer satisfaction.
• Computers and Electronics - Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming.
• Mathematics - Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications.
• Sales and Marketing - Knowledge of principles and methods for showing, promoting, and selling products or services. This includes marketing strategy and tactics, product demonstration, sales techniques, and sales control systems.
• Clerical - Knowledge of administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology.