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The differences between options traders and hedge fund traders can be seen in a few details. Each job has different responsibilities and duties. Additionally, a hedge fund trader has an average salary of $117,549, 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 hedge fund trader are hedge funds, macro, and derivative.
| Options Trader | Hedge Fund Trader | |
| Yearly salary | $110,139 | $117,549 |
| Hourly rate | $52.95 | $56.51 |
| Growth rate | 10% | 10% |
| Number of jobs | 1,433 | 12,689 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 82% | Bachelor's Degree, 84% |
| Average age | 43 | 43 |
| Years of experience | - | - |
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.
A Hedge Fund Trader specializes in developing investment strategies through market research and analysis. Although the extent of their duties depends on their company of employment, it typically includes managing and monitoring market portfolios, trading according to policies and regulations, reaching out to potential business partners through calls and correspondence, discussing terms, and keeping an eye on stock prices. A Hedge Fund Trader must maintain an active communication line with staff for an efficient and fruitful workflow.
Options traders and hedge fund traders have different pay scales, as shown below.
| Options Trader | Hedge Fund Trader | |
| Average salary | $110,139 | $117,549 |
| Salary range | Between $65,000 And $185,000 | Between $68,000 And $201,000 |
| Highest paying City | New York, NY | - |
| Highest paying state | New York | - |
| Best paying company | The Citadel | - |
| Best paying industry | Finance | - |
There are a few differences between an options trader and a hedge fund trader in terms of educational background:
| Options Trader | Hedge Fund Trader | |
| Most common degree | Bachelor's Degree, 82% | Bachelor's Degree, 84% |
| Most common major | Finance | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between options traders' and hedge fund traders' demographics:
| Options Trader | Hedge Fund Trader | |
| Average age | 43 | 43 |
| Gender ratio | Male, 90.8% Female, 9.2% | Male, 65.8% Female, 34.2% |
| Race ratio | Black 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, 5.4% Unknown, 4.1% Hispanic or Latino, 11.2% Asian, 12.2% White, 66.8% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 6% | 6% |