An equity dealer applies financial expertise and securities exchange knowledge to invest in stocks, preferred stocks and other equity-related products on financial markets. He usually works under the leadership of a senior trader and focuses on one sector or country. An equity dealer is also referred to as equity sales trader or equity trader.
An equity trader buys, holds or sells various equity products on stock exchanges. These products may include stocks, preferred stocks, equity options and financial futures. An equity dealer may trade on behalf of her employer, a client or a portfolio manager. An equity sales trader who uses corporate funds to buy, hold and sell financial products is called a proprietary trader. A firm records in its investment profit and loss account profits made and losses incurred in proprietary transactions.
Education and Training
An equity trader does not need any formal education to invest in securities exchanges. However, most employers require equity dealers to have four-year college degrees in business management or finance. A liberal arts major is not uncommon in the field, although he may need formal training before performing his duties. An equity dealer who applies quantitative methods of trading may hold a master's in financial engineering or a doctorate in econometrics.
An equity dealer's total compensation includes wages as well as cash and stock bonuses. This remuneration also may be affected by economic trends, stock market returns and a trader's performance. According to the Bureau of Labor Statistics, median salaries for equity dealers were £44,642 in 2008, excluding stock and cash bonuses, with the middle half earning from £26,312 to £79,475. Bonuses often may be substantial. Traders Magazine reports that senior equity position traders received from £1.0 million to £1.3 million in average bonuses in 2009, whereas senior equity sales traders earned median bonuses ranging from £1.3 million to $3 million during the same period.
An equity trader may move to a higher position if she performs adequately. She also can be promoted if she seeks an advanced degree, such as a master's or a doctorate in economics or financial analysis. A competent and skilled equity dealer may move to a senior role, such as managing director for equity sales, head stock trader or senior equity trader, in two to five years.
An equity dealer's working hours typically depend on stock market operating hours. Sometimes, business hours and administrative duties also may affect his schedule. A junior equity dealer may work a standard 8.30 a.m. to 5.30 p.m. shift, while a senior trader with supervisory responsibilities often may work late nights or early mornings.
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