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Options trader vs foreign exchange trader

The differences between options traders and foreign exchange traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a foreign exchange trader has an average salary of $115,133, which is higher than the $110,139 average annual salary of an options trader.

The top three skills for an options trader include FX, stock options and equities. The most important skills for a foreign exchange trader are manage risk, equities, and foreign exchange products.

Options trader vs foreign exchange trader overview

Options TraderForeign Exchange Trader
Yearly salary$110,139$115,133
Hourly rate$52.95$55.35
Growth rate10%10%
Number of jobs1,43317,829
Job satisfaction-5
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 77%
Average age4343
Years of experience--

What does an options trader do?

Options traders are financial experts who work for large investment banks or private hedge fund companies to buy and sell stock options as well as manage complex capital investments for clients. These traders are required to create options contracts and develop forecasting models so that they can determine the optimal price to buy an option to maximize profit and minimize risk. They must assist head traders with client services to allow more trading revenue production. Options traders must also employ risk management strategies to minimize portfolio risk and increase their volume in trading.

What does a foreign exchange trader do?

The foreign exchange market is volatile and influenced by numerous factors. A foreign exchange trader considers these factors and utilizes them in their favor. They typically take care to predict misvaluations of currencies accurately. They act on the conclusions reached from their analysis and either buy or sell assets in different markets. This position requires diligence and patience.

Options trader vs foreign exchange trader salary

Options traders and foreign exchange traders have different pay scales, as shown below.

Options TraderForeign Exchange Trader
Average salary$110,139$115,133
Salary rangeBetween $65,000 And $185,000Between $66,000 And $199,000
Highest paying CityNew York, NYNew York, NY
Highest paying stateNew YorkNew York
Best paying companyThe CitadelPaul Hastings
Best paying industryFinanceFinance

Differences between options trader and foreign exchange trader education

There are a few differences between an options trader and a foreign exchange trader in terms of educational background:

Options TraderForeign Exchange Trader
Most common degreeBachelor's Degree, 82%Bachelor's Degree, 77%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Options trader vs foreign exchange trader demographics

Here are the differences between options traders' and foreign exchange traders' demographics:

Options TraderForeign Exchange Trader
Average age4343
Gender ratioMale, 90.8% Female, 9.2%Male, 79.6% Female, 20.4%
Race ratioBlack or African American, 5.4% Unknown, 4.1% Hispanic or Latino, 11.3% Asian, 12.2% White, 66.7% American Indian and Alaska Native, 0.2%Black or African American, 5.5% Unknown, 4.1% Hispanic or Latino, 11.4% Asian, 12.3% White, 66.4% American Indian and Alaska Native, 0.2%
LGBT Percentage6%6%

Differences between options trader and foreign exchange trader duties and responsibilities

Options trader example responsibilities.

  • Enact, and manage equity block desk operation and set up floor broker network on NYSE.
  • Create VBA applications to automate basic trading functions and administration functions such as reorganization tenders and trade pricing issues.
  • Manage business, sales, marketing, international negotiation and communication for a commodities business.
  • Trade options profitably on screen markets and trade complex option spreads via telephone brokers at the CBOE and CME.
  • Experience in communicating and executing derivative arbitrage opportunities, as well as communicating and executing trades fitting against an option position.
  • Research the SPX, DOW, and NASDAQ.
  • Show more

Foreign exchange trader example responsibilities.

  • Manage overall risk for FX online dealer during Asia shift.
  • Communicate with brokers to ensure accurate allocations for futures, foreign exchange, and equities between separately manage accounts.
  • Experience using Bloomberg, Reuters, and FX trading platforms.
  • Display subject matter expertise in Reuters, Bloomberg, EBS, and various foreign exchange platforms.
  • Use of Reuters, CQG and Knight-Ridder computer services.
  • Validate transaction and trading details with international banks and multiple ECN trading platforms.
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Options trader vs foreign exchange trader skills

Common options trader skills
  • FX, 32%
  • Stock Options, 17%
  • Equities, 11%
  • Stock Market, 5%
  • Risk Management Strategies, 3%
  • Equity Options, 3%
Common foreign exchange trader skills
  • Manage Risk, 35%
  • Equities, 17%
  • Foreign Exchange Products, 12%
  • Foreign Currency Transactions, 8%
  • Technical Analysis, 3%
  • Fundamental Analysis, 2%