Working on a trading desk can be compared to participating in a sport due to the importance of focus and reflexes. Each phone call and computer notification represents a potential trade with a client, meaning that quick and attentive responses are essential. The pressure to meet client demands is high, as ignoring them could result in lost business to competitors. The intense heat generated by running computer systems adds to the stress of the job, making it difficult to step away from the desk on busy days.
Similar to sports teams using code to communicate strategies, traders also use specific language to discuss trades and market movements. Mistakes can lead to emotional reactions such as swearing, shouting, and even equipment damage. However, the trading environment has significantly changed in recent years. The aftermath of the global financial crisis led to stricter regulations that limited profits, while high-frequency traders began dominating stock markets. The global economy also experienced sluggish growth, resulting in minimal market volatility.
As a result, trading floors saw a decrease in activity, with fewer opportunities for traders to buy and sell positions. The lack of market movement translated to lower revenues and returns for traders. Instead of witnessing exciting market movements, trading floors saw more layoffs and downsizing. Overall, the once hectic and unpredictable world of trading has shifted towards a more subdued and less profitable environment.