Interview with stock exchange trader Günther Kornfellner
Stock exchange traders aim to generate profits by buying and selling securities. Today, their work takes place in front of computer screens rather than on the trading floor. In the following interview, Günther Kornfellner talks about the demanding day-to-day work of a stock exchange trader and the skills required for this profession.
Mr Kornfellner, you are a stock exchange trader at Raiffeisen Bank International AG. What are the responsibilities of a stock exchange trader? What does the job involve?
Kornfellner: As a stock exchange trader, you continuously monitor the financial markets, analyse price movements and macroeconomic factors and use this information to make informed trading decisions. Disciplined risk management through position sizing and hedging is a key part of the role, helping to actively manage risk and minimise potential losses.
Stock exchange traders also frequently act as market makers. In this role, they continuously provide bid and ask prices, ensuring sufficient market liquidity so that other market participants can buy and sell securities at any time.
Other core responsibilities include pricing financial derivatives and actively hedging risk. Particularly with structured products such as warrants, turbos and certificates, the resulting position risks need to be continuously monitored, managed and hedged.
The entire working day is spent in front of multiple screens. Using modern trading systems, stock exchange traders respond to market movements in real time and seek to turn their market assessments into profitable trading decisions. The company provides the necessary technical infrastructure and capital.
What does a typical working day look like?
Kornfellner: A stock exchange trader’s working day begins well before the market officially opens. The first step is to check the trading and risk management systems and review relevant news and overnight market developments.
When trading begins, the trader acts on initial market assessments, establishes new positions or adjusts existing strategies. The focus then shifts to continuously quoting prices for equities and derivatives. At the same time, proprietary products such as warrants and certificates are priced to ensure that customers have access to tradable prices throughout the day.
As the day progresses, open positions are continuously monitored, adjusted and hedged to limit risk and optimise returns. All trading takes place on screen, with prices, news and market analysis monitored simultaneously.
At the end of the trading day, positions are valued and the day’s results are reviewed.
What qualifications and skills do you need to work as a stock exchange trader?
Kornfellner: Both professional expertise and personal qualities are essential to succeed as a stock exchange trader. The profession has changed significantly in recent years, and a solid quantitative background and good programming skills have become virtually indispensable.
Alongside a sound understanding of financial markets, financial products and mathematics, analytical thinking, the ability to process information quickly and the capacity to make decisions under time pressure are essential.
Mental resilience, discipline and consistent risk management are equally important, as significant price fluctuations are part of everyday market activity.
Are there any specific requirements that applicants must meet?
Kornfellner: Working as a stock exchange trader requires a strong interest in economic developments and capital markets, combined with the ability to grasp complex information quickly and a high degree of responsibility.
At the same time, the role has evolved considerably in recent years. A solid understanding of mathematics and statistics, together with strong programming skills, now provides an essential foundation for long-term success in securities trading.
Thank you very much for the interview!