THE ROGUE TRADER’S JOB DESCRIPTION.

THE ROGUE TRADER’S JOB DESCRIPTION. About ten days ago, it was announced that a “rogue trader” at Societe General had taken stock trading positions that had cost that bank almost seven billion dollars. The bank made it known that while it had worried about the risks taken by its higher ranking traders, the Rogue Trader was too far down to worry about; he was dealing with low risk trades that were “designed to generate very little market risk” even though he traded very large amounts of money. What astounded me is this: the Rogue Trader was given an annual target to earn between 10 million euros and 15 million euros a year (roughly between 14 million dollars and 21 million dollars a year). I wouldn’t know how to make an amount of any size trading each year, much less count on making an amount each year, much less count on making millions of dollars trading each year. And yet that was his target.