How To Become A Market Maker: What It Is and Career Path - Zippia (2024)

Key steps to become a market maker

1. Explore market maker education requirements

   The educational requirements for a market maker are primarily a Bachelor's degree. According to a study, 88.17% of market makers hold a Bachelor's degree. The most common fields of study include Finance, Economics, Business, Political Science, and Accounting. The top schools for market makers are the University of Pennsylvania, Northwestern University, University of Southern California, SUNY at Binghamton, and Villanova University. However, a small percentage of market makers also hold a Doctorate degree, approximately 6.03%. Despite this, a High School Diploma or an Associate's degree is also found among market makers, albeit a very small percentage.

   Most common market maker degrees

   Bachelor's

   86.8

   %

   Master's

   8.4

   %

   Associate

   2.0

   %

   See Also

   Crypto Market Making Bot

2. Start to develop specific market maker skills

   Market makers use technical analysis and charting to identify trends in various products traded on the NYBOT. They manage trading books, analyze market conditions, and make decisions to buy or sell equities using fundamental and technical analysis. Market makers also hedge volatility positions with equity/debt instruments, such as CDS, convertible bonds, and variance swaps.

   Skills	Percentages
   Equity Options	11.22%
   Portfolio Risk	8.96%
   NASD	7.41%
   Financial Markets	6.45%
   Manage Risk	6.21%

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3. Complete relevant market maker training and internships

   Accountants spend an average of 3-6 months on post-employment, on-the-job training. New market makers learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a market maker based on U.S. Bureau of Labor Statistics data and data from real market maker resumes.

4. Research market maker duties and responsibilities

   A market maker is responsible for analyzing market conditions and making informed decisions to buy or sell equities using fundamental and technical analysis. They manage trading books, price and risk manage multiple positions in corporate derivatives, and establish electronic markets in all equity, index, and ETF products.

   • Manage and critiqu all trades execute on NYMEX trading floor via computer system.
   • Trade several equities and options names, managing all risk, capital and executing trades using electronic screen base software/technology.
   • Dissect and manage complex derivative position risks, manage risks and interpret complex financial documents.
   • Price and risk manage multiple positions in corporate derivatives, including accelerate share buyback programs and long-date convertible bond/call spread overlays.

5. Get market maker experience

   Generally, it takes 4-6 years to become a market maker. The most common roles before becoming a market maker include trader, trading assistant team lead and clerk.

6. Prepare your market maker resume

   When your background is strong enough, you can start writing your market maker resume.

   You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a market maker resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

   Choose From 10+ Customizable Market Maker Resume templates

   Build a professional

   Market Maker

   resume in minutes. Browse through our resume examples to identify the best way to word your resume.

   Then choose from 10+ resume templates to create your Market Maker resume.

   

   

   

   

   

   

   

   

   

7. Apply for market maker jobs

   Now it's time to start searching for a market maker job. Consider the tips below for a successful job search:

   1. Browse job boards for relevant postings
   2. Consult your professional network
   3. Reach out to companies you're interested in working for directly
   4. Watch out for job scams

How do market makers rate their job?

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.