The future of trading?

Since equity trading desks at banks are being replaced by algorithms fast, is the same going to be true for other desks later on? Is there any point in getting into trading at a bank now (I'm only going to start uni next year)? Also, will knowing any programming languages fluently be useful? And if so, will doing a coding course online help since I'm not doing a stem degree?

I've seen so many articles on efinancialcareers and Wall Street oasis that are saying that there is no point going into trading now since I will likely lose my job to a machine. If this is true, what other related careers are there to do with the financial markets thslikely wont die out?

Reply 1

username738914

21

Original post by biglad2k16

Since equity trading desks at banks are being replaced by algorithms fast, is the same going to be true for other desks later on? Is there any point in getting into trading at a bank now (I'm only going to start uni next year)? Also, will knowing any programming languages fluently be useful? And if so, will doing a coding course online help since I'm not doing a stem degree?

I've seen so many articles on efinancialcareers and Wall Street oasis that are saying that there is no point going into trading now since I will likely lose my job to a machine. If this is true, what other related careers are there to do with the financial markets thslikely wont die out?

Trading won't die.

Sure equities has been pretty much taken over by algos now, but the same can't be said for rates, currencies, commodities etc. Human traders are still needed in quite a lot of markets, especially the OTC and off-exchange products. Add to that, derivatives desks where the volume simply isn't there for an algo or HFT strategy to make use of.

As has been the case, trading now is shifting more towards the derivatives business. Hedging, and risk managing on behalf of clients and for the bank.

Simply put, you have nothing to worry about.

As for languages, learn VBA and possibly Python/C++.

Posted from TSR Mobile

Reply 2

ahpadt

15

Original post by Princepieman

Trading won't die.

We can't put it that simply. We have no idea how clever machine learning might get within the next 10 years.

Reply 3

username738914

21

Original post by ahpadt

We can't put it that simply. We have no idea how clever machine learning might get within the next 10 years.

There still needs to be a human to write the code for the machine. As is the case with Algo traders today.

Reply 4

ahpadt

15

Original post by Princepieman

There still needs to be a human to write the code for the machine. As is the case with Algo traders today.

Sure. The emphasis will clearly be more towards software development. Anyone working in "trading" in the future will very likely need to have a much stronger understanding of programming and science.

The future of trading?

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