BROWSE

Head Trader

What is 'Head Trader'

The manager of a trading business. He or she is responsible for the positions, risk and ultimate profitability of that business. In a registered securities firm, the head trader supervises all traders and other personnel within his or her purview. Most notably, the head trader is charged with insuring regulatory and internal compliance for every employee who is part of the trading operation (i.e., not just traders).

Explaining 'Head Trader'

Any head trader in a securities operation with supervisory and/or approval responsibilities must be a registered principal, meaning they must hold all the basic securities licenses and possess one of the following: a series 4, 9, 10, 23, 24, 51 and/or 53 license. The exact principal exams required depend on the scope of the head trader's responsibilities. In smaller firms, there may only be one or two head traders, but in large firms there are frequently many head traders, each in charge of a specific market. The head trader for municipal securities, for example, would have, at a minimum, a series 53 license. Different licenses apply for futures and commodities trading operations. A registered options principal, for example, will hold a series 4 license.


Further Reading


Identifying noise traders: the head-and-shoulders pattern in US equities
papers.ssrn.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

Neoclassical finance, behavioral finance and noise traders: A review and assessment of the literatureNeoclassical finance, behavioral finance and noise traders: A review and assessment of the literature
www.sciencedirect.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

The noise trader approach to financeThe noise trader approach to finance
www.aeaweb.org [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

Financial risk and the need for superior knowledge managementFinancial risk and the need for superior knowledge management
journals.sagepub.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

Global microstructures: The virtual societies of financial marketsGlobal microstructures: The virtual societies of financial markets
www.journals.uchicago.edu [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

From dissonance to resonance: Cognitive interdependence in quantitative financeFrom dissonance to resonance: Cognitive interdependence in quantitative finance
www.tandfonline.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

Chinese factor in the space, place and agency of female head porters in urban GhanaChinese factor in the space, place and agency of female head porters in urban Ghana
www.tandfonline.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …

Itchy feet vs cool heads: Flow of funds in an agent-based financial marketItchy feet vs cool heads: Flow of funds in an agent-based financial market
www.sciencedirect.com [PDF]
… before the neckline-crossing, and the like. Furthermore, many traders require separate … The first step in this analysis of profitability must be to measure the profits that would have been associated with head-and-shoulders trading in reality … the trader would be long or short …



FAQ


What are some categories of traders?

The Wall Street Journal lists several categories of traders including managing director and arbitrageur.

What does a managing director do?

A managing director is responsible for overseeing the trading activities at an investment bank.

What does an arbitrageur do?

An arbitrageur seeks to profit from price differences between two or more markets by taking advantage of market imperfections.

What does a speculator do?

Speculators take positions in assets they believe will rise or fall in value over time but whose prices may not reflect their true value immediately.

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