Optiver Amsterdam

A typical day

Around 8am the trader will start his day. Traders will have arrived anywhere between an hour before their market opens so some may start earlier or later, but they usually work 10 hours a day. The next thing to do is to check the positions according to the clearing firm we use against our own expectations from the night before. After the position check there will be a calculation of the new total profit/loss for the current year).

During the day, a trader is continuously shifting his model parameters in order to adapt his option prices to the supply and demand in the market. Successful market making is the result of excellent decision making about the price, size and width of quotes in the market. This will allow the capture of desirable trades, the avoidance of less desirable ones and only leave positions that are manageable against the liquidity the trader determines there to be in a market.

One of the important skills a trader needs to have is the ability to communicate with other traders about what is going on in the many different markets we trade in. Many financial markets are related to each other and we can take advantage of opportunities that arise from better communication and understanding between the traders in different markets.

During the day economic data get published that can have an impact on the market. A publication can cause the market to move sharply making it among the most important events during a day (together with the opening and close of the market), because at those times the volume of trading is usually highest.

At 17.30, most option markets close. On some days, some of our markets will close at 11pm! Whenever the close, the trader will have to do his evening administration to check the profit/loss for the day and check the final position.

The trading systems are closed down, and the trader is done for the day.