Q to flow business

NPhard · Post by **NPhard** » Thu Jan 10, 2008 6:27 am

Hello all. need your help!!

What's the meaning of "flow business" in equity derivatvies market? I was extended an offer and told that the house mainly focuses on "flow business".

Would be appreciated, if anyone could put your two cents in. Many thx.

doctorwes · Post by **doctorwes** » Thu Jan 10, 2008 7:31 am

I believe that "flow" means making markets and acting mainly as an intermediary, versus "prop" which means taking risk. A flow desk makes money by collecting the bid/offer spread and minimizing risk; a prop desk makes money by holding and trading positions, e.g. taking directional views. Of course, the distinction is sometimes blurred in practice.

FDAXHunter · Post by **FDAXHunter** » Thu Jan 10, 2008 8:27 am

[url=/Show%20Post.aspx?PostIDKey=74143]What exactly is a "trader"?[/url]

DrTarr · Post by **DrTarr** » Fri Jan 11, 2008 4:22 am

I was never a flow trader nor a quant - but I used to run a prop - one like FDAX's too.... I guess I caused good flow as we had about 70,000 shaft horspower.