Optiver Traders

If they don't have some exemption, I can't see how they will be able to stay Delta Hedged so would increase there Risk A huge amount.

You might Even see Tibra and Optiver asking for an exemption together if they don't have one. Considering there history that would be a shock
 
Fair enough.

I am slightly concerned as I have a grad job at one of them in the future and am not sure whether or not I should keep other options open in case the whole thing goes ass up. However maybe it will push smaller players out of the market? I don't really know and it is hard to comment without having actually started trading there!
 
Read the small print...

All the bans are on NAKED short selling!!

It means if you are hedging then its fine..
 
no hood, in Australia, anyway, it is on all short selling!! sorry for the confusion, and i know it is only indefinite.
 
Yes Hood. Then on Monday they extended that to including all short sales. As of today however they advised the market that Market Makers would be allowed to short sell for the purposes of hedging - so Optiver is fine.
 
Now the big question is, how much did Tibra, Optiver IMC, etc petition ASIC in that day? and how much were they freaking out
 
This is probably the worst possible time to get involved with trading.
Though I have to say, it'll be interesting to see how smaller prop firms would fare in such circumstances compared to bigger competition.
 
would have thought that trading in an arb firm would be best at a time like this - most volatility = most profit.
 
Word in the banks is that optiver will benefit from the current short selling rule because the normal shorting they do (to delta hedge) has been permitted, however the normal shorting other firms/banks etc. do (for example outright shorts, or long/short trades) have been banned. Therefore these firms are using alternatives to achieve the same outcome, which involves them using options. Hence the market maker benefits. Sounds pretty good when you put it like that 🙂
 
Its interesting that after the US put the short ban on a lot of markets around the world followed suit, despite the fact that there was a lot of clamour earlier on to ban shorting because the supposedly high profits hedge funds were earning- I don't hear too much the usual line about short selling adding liquidity to the market anymore 🙂

Also, just out of interest, with Morgan Stanley and Goldman Sachs incorporated as Bank Holding Companies, how do you guys think this will affect their trading desks vs. prop firms and MMs.
 
1. The ban on shorting helps one thing not another, perhaps it prevents certan stocks from being attacked. No doubt we would still have a Lehman, HBOS and Merrill if it had been done earlier - which equates to 40000 jobs in UK alone - so the widespread effect on the economy is there to be seen. But also note that in the past we have had no short selling and bear markets still exist, also that since we have had short selling banned we have had a week of extremely low volumes (very bad considering september is one of the busiest months traditionally) and extremely high volatility. In a market of high volatility people will not invest in 'risky' assets, so really does shorting have the effect that we desire. Personally, I think that its a tough balance which is why people are paid so much to make these decisions - but either way I can't see it as a long term solution to anything.

2. The effect on Goldman/Morgan is great (in the short-term at least), they have access to new deposits funding which is cheaper than the interbank markets and now this gives them access to the FED discount window as well. In the long term the worry for them though is what made them so successful was the ability highly leverage up in the good times... now they will be far more regulated and therefore will not be able to do this as much. As for individual trading desks, you may find they have to scale down their risks or at least show that they understand them and manage them better.
 
Last edited:
optiver tests and interviews

I just passed the Optiver numerical tests in London last week. I thought I'd add what I found out to the thread, and also ask a question or two.

They've invited me to go to an interview in Amsterdam. (I asked to postpone it by a couple of months to give me a little more time to prepare.) Have any of you interviewed there, and, if so, can you tell me what I can expect? What can I do to prepare?

The test, as some people hinted, is made of lots of easy questions, but you need to answer them in under ten seconds each to have a decent chance. I got through each round by the skin of my teeth, but there was another guy there who got 77 (!!!) or so on the first test, and beat me on the other two as well! About a dozen people took it at my session, so I'd guess the odds aren't quite as bad as some of you guys claim.🙂

Also, I didn't actually ask about the salary/bonus - I wish I had. Does anyone know what they pay first years, and how it's likely to increase in the first few years?

Thanks.
 
You have an interview with the HR woman and then 2 traders which will be at the same time. The HR woman asks you about yourself and why you want to be trader/ at optiver. The traders ask you more about yourself and about some other things, maybe a market news, they asked me about greeks but general consesus is that they dont. I had past experience with greeks so i guess that is normal maybe in this case. Also they will ask you some other common questions - i.e. what effects the price of an option.

Nothing killer, you do not need 2 months to prepare, go and do the interview, seriously an options trader needs balls so go and do it. Also this may help you I know for a fact they have a grad intake on Dec 1st, and as far as i know they do it twice a year so you may be waiting a while if you do not sign up now.

As for pay its 30000 euros basic plus some small benefits like free housing for 2 months, one month's salary as a summer bonus (which I dont understand, must be a dutch thing) and 25000 euros bonus guaranteed if you survive one year 🙂
 
Hi Hood

would you know why the pay in Australia/US is significantly better than the pay in Amsterdam? I have been offered an Australian position on 100k base (about equivalent to 50Euro) and from the sounds of it a first year bonus of between 20 - 40k (10 - 20Eur).. so looking at a package of around 65Euro plus 1 months accommodation
 
By looking at the entire package I was offered I valued it at around 62k a year so I guess it is pretty much in line
 
Optiver's pay still seems kind of low compared to banks and even rivals like Tibra. Is Tibra much harder to get into, or am I missing something?

Is the first year really just probationary, and you get paid much more after that?
 
functoriality said:
Optiver's pay still seems kind of low compared to banks and even rivals like Tibra. Is Tibra much harder to get into, or am I missing something?

Is the first year really just probationary, and you get paid much more after that?
Click to expand...

Your first year minimum is this much, other than that I can not comment. I dont have any experience with Tibra to add either.

Yes banks pay more initially, but the opportunity to earn is just as high over a career, if not more at Optiver. It is much harder to get a job in a bank and their structure is much more complicated. They allow traders to take some risk which is great if you have a market view. But right now they are not hiring traders and even when they do you will not get your own book for up to 2 years. Whereas in optiver its after 1 month. So you have to weigh up everything.

Honestly with regards to firms like optiver there is not a huge amount of information out there. Just lots of rumours. Tough to make a decision. I would call them to get the most accurate info as poss. There is no harm in asking what are pays like after 3 years, 5 years etc of course you need to know to make a correct decision. They cant not hire you for asking.
 
also depends of you're good or not, or oif you adapt to trading conditions and make money. eg current huge vol climate very different from 2 years ago where it was all about selling those teenies 😉
 
You must log in or register to reply here.

Similar threads

E
Optiver trader test
2
Replies
23
Views
36K
namoek
N
G
Optiver Vs Tibra
Replies
0
Views
2K
goodveblen
G
F
Optiver Vs Tibra
Replies
19
Views
20K
_Alekhine_
A
M
Derivatives Trader vs Wholesale Trader (Optiver)
Replies
10
Views
12K
bambouk
B
S
GH Financials
Replies
4
Views
3K
tyler.d33480
T
Back
Top