Original subtitles

in this video i'm going to teach you exactly what wall street traders do and

they make money having worked as a trader myself for the past two years my

is mert and i'm a quant trader i've worked at two different hedge funds now

currently working at high frequency trading firm and this is a video i wish

existed when i was trying to break into the industry so let's get started so

we'll be covering three different types of traders across the street first we'll

be covering hedge fund traders then we'll be covering high frequency traders

then finally we'll be covering investment bank traders because to be

honest with you all traders across these funds do very different roles and

different ways in which they make money. So out of the three I have experience

having worked at a hedge fund and now currently working at a high frequency

trading firm. The only one which I don't have an experience in but I work very

closely with is investment bank traders.

Across the board they all do very different things and how they make

We're going to break exactly what they do in full detail let's start with hedge

fund traders now this is the one which i think surprises most people to be

completely honest most people think hedge fund traders are the people who

actually make the shots and guess where a stock or whatever they trade goes up

down etc etc but that's actually not true the traders at a hedge fund are not

the people who actually generate P &L. The majority of the time when you hear

the term trader at a hedge fund it usually means execution trader which is

different compared to the other two categories.

In fact we're going to break down traders into two categories.

P &L generating traders and not P &L generating traders.

Obviously it's great and we're going to talk in detail on what that actually

means. In a hedge fund structure the way it works is you usually have a chief

investment officer that's at the top. This is for the actual investment side

the firm so not middle office and back office which is like ops etc in front

office you usually have a chief investment officer and then you would

that you'd have a bunch of portfolio managers and then finally at the bottom

you'd have investment analysts And this is basically the team that generates P

&L. If it's a large firm, you might have senior portfolio managers, junior

portfolio managers, and same with analysts. You might have senior analysts

junior analysts, et cetera. That's the P &L generating side of a hedge fund. In

the front office, you would also have the...