Home investors have no edge to research, tips, speculation, stuff that drives individual stocks. And then I doubt an individual investor understands macroeconomics and data points that come out. And then there are commissions when combined with active trading, will probably make a slightly +EV trader a loser.

So trade FX there are two platforms that are used globally by every bank. They are the market place. One system is for EURUSD, USDJPY, EURJPY, USDCHF, EURCHF, the other is AUDUSD, NZDUSD, USDCAD, EURGBP, EURSEK, EURNOK, EURDKK. So if someone asks for a two way in 100 EUR, I would probably make it 5 pips wide. So after the deal is done a human trader would use his keypad to buy/sell. It isn't hard to sit on the bid or lift offers, just your preference. But yes, there are tons of algos providing liquidity and doing trades but that isn't market making for client demands. There are electronic pricers that will make a price for you in a currency up to a certain amount and you can act on it but I don't think that is what you meant.

Of course there will be some individual investors that beat the stock market but I think ultimately it is a lost cause for a few reasons:

1) You have no research edge
2) Individual investors probably aren't good at deciphering data points, both micro and macro
3) Individual investors probably don't have proper risk management
4) Commissions hurt a lot more for an institutional investor

There are probably many more

Depends on the desk. I worked from 6:30-5:30 in FX and 5:45-4:45 in Equities. But I know there are people on, say the CDO desk, who worked from 9-12. I would say as a S&T analyst be ready to work 12 hours a day, 5 days a week, no weekends. So 60 hours a week.

You are allowed 15 planned days off and 6 unplanned days off plus you are supposed to take a two-weeker.

I don't stay late after work, just do end of day stuff and then leave. I get in early to put together our morning piece which goes out to our clients around 6:50am. It is a client serving business, gotta get our report out the first and the analyst has that awesome responsibility. Just for note I am probably the analyst that gets in the earliest but everyone else is coming in between 6-7, mostly 6:30. There is only so much you can read so I would say I read research for an hour in the morning? Trading happens from 9:30-4 obviously in Equities. In FX I read/trade when I felt because there were no set structure. When it's slow you read more naturally. And it's not like I'm flipping positions for 5 pips ever minute. I don't do research at home, reading emails is the furthest I go.

Atmosphere is good, it's full of characters and it's fun. Lots of interesting people. I would say the average age is like 28-30?

I like Citi but I know there are people who aren't happy and two analysts left during their second year and dropped out of finance.

I'm actually undergoing the Associate Promotion Process. So after two years, you are reviewed by a committee, you interview with two senior MDs, and then they decide if you are promoted to Associate and get to keep your job or you get fired. I find out April 26th if I get promoted so it's a little stressful. There is definitely a chance I get cut soon because of it but during the program you are guaranteed two years of work. You can't be fired during your two analyst years unless you do something illegal or break some HR policy or just do something really, really, stupid. Yes there are layoffs going on at Wall Street, lots of banks of slimming down.

Structuring is boring. You are given a project, you can take a couple of hours, a day, a week, and you work on it. There is no excitement in that. Market events are mostly irrelevant. In trading you are put into thought provoking situations that makes it fun. Plus you have more discretion and freedom.

Bonuses for analysts were fine, I'm not complaining. Bonuses for non-analysts depended on your P&L, there were some $0 bonuses.

What is your take on the future of the banking industry, especially in terms of how regulation will affect/has affected your industry and trading (e.g. Dodd Frank, Basel, and Glass Steagall)?

Not to add to your stress, but what's your plan if you don't become an associate? What percent of analysts become associates? What was your review process like for your first year?

The banking industry is already heavily regulated, cracking down on all "prop" positions will be impossible. If a bank is put into a position by a client, because that client wants to do a huge trade, what is the bank supposed to do? Does that position turn into prop since it's going to be handled and hopefully made into money or does it count as market making and it's okay? Well then, what's to stop a trader from getting long or short when a client transacts if they don't get the position off their book immediately? If the EUR trader wants to be long 50 EUR as prop and a Hedge Fund sells 50 EUR to the trader in his market making business and holds it, he just made his prop position. I can't see how across all the books and traders they can crack down on prop.

If I don't become an associate I'll apply elsewhere. I'm still pretty well qualified. I think about 60% of analysts become associates. First year review is nothing special, you meet with a HR rep and your boss, they review your year, and then you get your bonus. Second year review, that effectively turns into whether or not you get into the Associate Program, is much more important. There is a committee of senior employees who review each analyst, how their interviews went, what their past co-workers had to say about them. Then April 26th comes along and I'll be told if I'm in or not.

What are you thoughts on CTI?

thanks for interesting read

was there any memorable situations except the NOKSEK trade. Something with excess inventory or someone making a mistake. Also is there a limit on how long or how much you can hold inventory on mm or prop book and after that you are forced to cover? Is there any good literature on market making similar to the training you've got.

Ha oh man, so ****ing many.

Jackson Hole day, was within my first week of trading, the client book was all offers above and then stops higher, I made 20K. I had no idea what happened but it felt awesome going home and telling my family I made 20K within my first week of trading.

QE2 day I lost 55K and my daily limit was 10K. This was still within my 1st month. I was on the EUR book and it went from 1.4050 to 1.4200, then down to 1.3950, back to like 1.41. I was so ****ed, I had no idea what was going on and when I saw my P&L, I was like ****!

I traded during the Euro debt crisis. So many headlines would move EUR 100 pips easily in a minute. I remember when the ECB raised the refinancing rate by 25 bps and it was a **** show. There are just too many ****ed up EUR situations

Oh, I was also there when USDJPY collapsed below the historical low of 79.25 (I think) during the Earthquake and USDJPY going to 75.75 in a span of minutes at 5:20 which is complete dead time in the FX world when NY is leaving, Tokyo isn't in, and it's only Sydney.

When I was on the AUD & NZD book, there was on time that the AUD/NZD trader had to go to the doctor and the RBNZ monetary policy decision was at 4:45 NY time. And it was my responsibility. there was no liquidity and for some reason every single HF wanted to sell NZDJPY. That was fun, prob sold like 200 NZDJPY in an illiquid time, somehow I made money because even when I was done with one client, I just kept selling more anticipating another client would want to sell.

The only limit for how long you can hold a position is if you reach your daily P&L limit. You will be forced to reduce at the minimum, cut the entire position usually.

Can't think of any literature, it's a lot of feel and understanding the liquidity in the market.

Day of Reckoning is tomorrow, find out if I'm promoted or fired tomorrow. Feels so gross, finance is so ruthless. Lets Gooooooooooooooo

And Rangers game 7!

Good luck.

Sick life

Good Luck!

One time!

Didn't get an offer, effectively fired. We'll today sucks, might be suicidal if the Rangers don't win.

sry to hear that

did they gave a valid reason or usual bs?

I get that tomorrow in my review. Worst part is for me to get my bonus I have to work for another 2 months...

That sucks. What kind of P/L did you have at the end of the year?

He is a bulge bracket analyst, no P&L and not sure he would ever have one as a straight trader as some shops don't let them take any real prop risk (i.e. no extended holds on positions, etc.).

I get that he's at Citi - I managed not to tl;dr the 7 line opening post

But I guarantee someone's keeping track of his P&L - certainly daily for risk, but probably long haul to decide to keep/fire him.

And he specifically mentioned he had prop positions - I didn't see if they were overnight, but I'd assume no. Sill, you can accumulate P&L interday believe it or not.

Analysts aren't measured by P&L cause a good majority aren't allowed to trade because of their desk. First year I made about $300K, 2nd year is commission basis and I was a support role so I had no direct P&L.

What was your typical position limit without getting someone more senior involved year 1?

I've done 50 AUD and 40 NZD before for market making purposes, for prop purposes I was allowed to do 10M and under.

From speaking with people apparently it was about my "arrogance" which to me was just confidence, haha. Not good for an analyst to do that apparently.

Sorry to hear you didn't get an offer. I was surprised when you said ~60% of analysts get offers. I thought it would be a lot lower. I remember applying to a derivatives analyst position and HR told me to be prepared to go get an MBA after the rotation because the norm is no one becomes an associate.

I hope you keep us updated on your career and gl with whatever is next.

sorry to hear Financier. you seem smart/logical + positive attitude so somewhat surprised it didn't work out.

if you are comfortable disclosing, would be interested to hear what they in the review.