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Can I become a trader with an economics degree Watch

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    When I go on LinkedIn, most of the incoming trading analysts are from Imperial and are doing maths or other quantitative degrees. So this makes me wonder- do banks have a bias towards these students studying quantitative degrees at top universities? Would I be able to get into trading with a Stats, Econ and Finance degree from UCL if all the other aspects of my profile are strong enough? Or am I missing that quantitative ability?

    I honestly am worried because so many of the new traders seem to have maths or engineering degrees from Imperial or Oxbridge- most of the UCL and LSE people seem to go into IBD or sales instead. So would I get put into sales if I apply for an S&T internship since my degree won't be quantitative enough? Because I really don't wanna do sales.
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    (Original post by kangsterf)
    When I go on LinkedIn, most of the incoming trading analysts are from Imperial and are doing maths or other quantitative degrees. So this makes me wonder- do banks have a bias towards these students studying quantitative degrees at top universities? Would I be able to get into trading with a Stats, Econ and Finance degree from UCL if all the other aspects of my profile are strong enough? Or am I missing that quantitative ability?

    I honestly am worried because so many of the new traders seem to have maths or engineering degrees from Imperial or Oxbridge- most of the UCL and LSE people seem to go into IBD or sales instead. So would I get put into sales if I apply for an S&T internship since my degree won't be quantitative enough? Because I really don't wanna do sales.
    What kind of trader?

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    (Original post by Princepieman)
    What kind of trader?

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    I would prefer something in FICC like interest rates trading. Nothing exotic.

    (By trader I mean a trader at an investment bank, not a prop trader)
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    (Original post by kangsterf)
    I would prefer something in FICC like interest rates trading. Nothing exotic.

    (By trader I mean a trader at an investment bank, not a prop trader)
    Should be fine with Econ. Especially in FI where knowledge of macro econ can inform your view on the markets.

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    I think the stats econ and finance degre at ucl will be fine for vanilla stuff but for exotics they definitely prefer maths/engineering graduates over the economics/humanities stuff. LSE in particular is one uni which hardly ever sends people to exotics desks.
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    The reason why Imperial shows up so much in recent trading hires is because trading desks are becoming more automated and the desks that probs will not become automated are exotic derives- which require a maths, engineering, compsci grad with that quantitative ability. That's why LSE in particular doesn't show up much anymore because the most quanty degree they have is maths and econ which isn't quantitative enough for exotics trading.
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    (Original post by squish562)
    The reason why Imperial shows up so much in recent trading hires is because trading desks are becoming more automated and the desks that probs will not become automated are exotic derives- which require a maths, engineering, compsci grad with that quantitative ability. That's why LSE in particular doesn't show up much anymore because the most quanty degree they have is maths and econ which isn't quantitative enough for exotics trading.
    Exotics is a loooooooooooooong way away from automation - market is too illiquid

    And no, it's because they're generally better mathmos who can understand the pricing mechanisms at play and the various risk exposures

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    (Original post by Princepieman)
    Exotics is a loooooooooooooong way away from automation - market is too illiquid

    And no, it's because they're generally better mathmos who can understand the pricing mechanisms at play and the various risk exposures

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    I was saying that exotics wouldn't be automated so I agree.

    I'm pretty sure banks prefer COWI maths/engineering grads over LSE/UCL ones because they offer more quantitative degrees like pure maths or engineering which LSE in particular doesn't offer. It's not really possible to get into exotics trading from LSE.
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    (Original post by squish562)
    I was saying that exotics wouldn't be automated so I agree.

    I'm pretty sure banks prefer COWI maths/engineering grads over LSE/UCL ones because they offer more quantitative degrees like pure maths or engineering which LSE in particular doesn't offer. It's not really possible to get into exotics trading from LSE.
    Ah misread, fair play on that.

    It is possible, just not as common. Tbf, I've actually spoken to someone who studied classics but landed on an exotics desk - guy was very dmart with numbers tho
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    So many trading threads these days...
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    Guys what is the most quantitative vanilla desk out there? Like in terms of the complexity of the pricing models
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    (Original post by Ladbants)
    Guys what is the most quantitative vanilla desk out there? Like in terms of the complexity of the pricing models
    That's kind of oxymoron. But generally there's a spectrum from 'spot' products to delta one.

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    (Original post by Princepieman)
    Exotics is a loooooooooooooong way away from automation - market is too illiquid

    And no, it's because they're generally better mathmos who can understand the pricing mechanisms at play and the various risk exposures

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    I don't know much about investment banking, so I don't know the lingo.


    What do you mean when you say exotic? What is it?
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    (Original post by 34908seikj)
    I don't know much about investment banking, so I don't know the lingo.


    What do you mean when you say exotic? What is it?
    This is markets terminology not investment banking per se.

    Google is your friend dude. Exotic derivatives are more complex derivative products. Like an option on future, or a swaption, generally products with more sophisticated pay off curves.

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    (Original post by Ladbants)
    Guys what is the most quantitative vanilla desk out there? Like in terms of the complexity of the pricing models
    Rates options are one of the most complex vanilla desks(if not the most) according to a trader I spoke to on LinkedIn. Cash equity is the least.

    Overall, FICC tends to be slightly more quantitative than equities. It's usually what most traders want to work in, as well.
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    (Original post by Trapz99)
    Rates options are one of the most complex vanilla desks(if not the most) according to a trader I spoke to on LinkedIn.
    Mate, I don't think I have you on LinkedIn - can you PM me your profile?

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    (Original post by Princepieman)
    Mate, I don't think I have you on LinkedIn - can you PM me your profile?

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    Yeah I will but it's not very well developed. I don't even have my surname on there. Had it for a few weeks,
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    lol i got banned on linkedin
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    (Original post by datboii)
    lol i got banned on linkedin
    Lol wtf? How?

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    Im going to become a trader but im doing computational science, a Bsc Economics from a top uni is as equivalent to all those linkedin people with B.Eng.

    Yes a Bsc economics will make u a trader

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