There are not many women in commercial trading worldwide. Recent research has shown in the past, women account for about 15% of traders in investment banks, and what proportion seems to have fallen. The situation is even worse in large hedge funds. In Brevan Howard, only 6% of employees are women registered in London. In BlueCrest Capital Management, about 7% are.
Some financial trading websites have recently said it saw an increase in the number of women trading in financial markets and spreadbetting. Although still a minority, seemingly 25pc customers are women, compared to virtually zero 26 years ago.
More women are taking business. But anecdotes indicate that more women are commercial. A recent finance conference held in March where 32% of participants were women, against 10% four years ago. Anecdotes suggest that more women are commercial. Women can also benefit from starting credible online trading markets such as CMC Markets in Spread betting.
The ability of e-commerce is a contributing factor. It’s used to being that business, had to call a broker or appear on a trading plan and make the battle. But computer commerce is anonymous, so the kind of a trader does not matter.
Computers also allow operators to work from home, and working hours can be flexible. That can work well for, say, a mom wanting to collect their kids from school. (It’s possible, of course, to work just as well for a parent.)
The 2008 financial crisis was also a major catalyst. Many people at home, both men and women, have watched their bank accounts have been reduced and decided they could better manage the money professionals. They have taken away business, often starting with quoted shares at NYSE and Nasdaq. Some have moved from there to trade options, futures or business tastes of the CME Group.
And it is possible that women are able to survive the madness of trading a bit more than men. Over the years, thousands (if not tens of thousands) have tried and did not trade money. The success rate is low, and I know of evidence that women show more success than men. To be more precise, the use of more female sex workers reduces the chances of a market collapse and increases the regularity of positive business returns, according to the study. The ability of e-commerce is a contributing factor. It’s used to being that business, had to call a broker or appear on a trading plan and make the battle. But computer commerce is anonymous, so the kind of a trader does not matter.
Despite the results, most commercial desktops continue to be dominated by male traders. A study by JM Coates in 2012 found that operating rooms are 95% of men and 5% women on average after a survey of operations in the United Kingdom and the United States.
In specific business, clearing and bonus systems in place do not even favor women.
According to the article at the University of Leicester: “Although male males may under perform traders and profit less often, premium regimes in financial companies may still choose large groups of male traders.”
In other words, while women’s operators can do better as a group, they are still paid less than their male colleagues in general. Female traders are actually more numerous male traders on average, but men are more likely to “keep the nerves up” during the turbulence of the market. Men are also abnormal values for abysmal performances as a result.
Hence, if the artists really exceptional and really horrible are the two men presenting financial retirement structures operating in most banks and asset managers to reward this attitude to taking risks? The report indicates that they do, despite regulatory efforts to change this culture.
“Financial bonus systems usually reward the best and often lead to a large number of other operators being fired, even those who earn little profits.” Personnel counseling can take into account the impact of financial incentive systems for two reasons. One of them – can increase the risk of catastrophic loss and increase the call to Chase losses and two – because they may also be unfairly targeted towards men.
The report concludes that “in a context of highly selective performance-based assessment … it would be expected that the population is increasingly unbalanced towards male workers, albeit on average, under performed.