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Right... most traders get big bonuses when they win, but if they lose, at worst they get fired. If you can win for a while and then get fired eventually, you'll
by speedplane 8y ago
Right... most traders get big bonuses when they win, but if they lose, at worst they get fired. If you can win for a while and then get fired eventually, you'll still end up on top.
- gaius 8y agoTrader A makes $10m in year 1 and gets a $1m bonus. She loses $10m in year 2, and gets no bonus so the firm is down her $1m bonus. Trader B makes $1m in years 1 and 2. That’s too low to trigger a bonus, but his firm is up $2m. The system doesn’t reward trader B so he has to choose: do what’s right for the firm, or take big risks in the hope of a bonus (Simplifying dramatically)
- cheez 8y agoMany firms implement clawbacks for this instance