What is a currency strategist and how can you become one? Is it the same as a financial analyst? If you are curious to know more about currency strategist jobs, We answer these and more questions in the following lines.
What is a currency strategist?
The job of an Fx strategist consists of participating in the development of financial investment strategies in conjunction with portfolio managers and on behalf of end investors, whether institutional or private.
Therefore, the main function of a strategist is to identify the most likely evolution of financial markets over various horizons.
It does not directly apply the options intended to reflect these evolutions, but rather develops them with managers. It is a job that is part of the investment process of asset managers but is further removed from the markets.
A distinction must be made between the work of a strategist and that of a market economist. While one is integrated into the management process, the other has more of an external advisory status.
There is no specific training except in the private sector. However, some sections allow you to advance towards these professions.
The Fx strategy expert has received training in economics (bachelor's degree in economics, business sciences, business engineering, etc.) from a long-term university or higher education in economics.
These are general training courses that allow you to acquire the ability to analyze economic problems. Employers are then typically responsible for training money changers internally.
You learn on the job by following a “senior” who will have to pass on the tricks of the trade.
Skill Set Required for the Currency Strategist Role
First of all, it is necessary to have a perfect knowledge of the technical characteristics of financial products and master all the mathematical and financial limitations that they entail. Furthermore, to convey his ideas to his clients, a salesperson must be charming and have good communication skills. They must finally get lucky!
The trader, for his part, must be very technically strong. A good trader must not only have strong character and temperament to impose his position on his direction when necessary, but must also have intuition.
These activities generate a very high remuneration. Thus, sellers who earn more than 15 million euros in commissions can earn more than 500,000 a year.
Soft skills
To carry out his activity successfully, the money changer must develop a series of qualities and skills:
- The goal of the currency strategist within the bank is to generate a profit margin, so they must be creative to propose “solutions” that generate more money.
- Stay humble in the face of the large sums you see passing by each day.
- Even if they sometimes do good business, they are not immune to costly setbacks for their company. That is why honesty is very important; There is no point in hiding your mistakes.
- Forex strategists must stay up to date with current events because the markets are directly influenced by them.
- Since everything moves very quickly, the exchanger must be very resistant to stress and develop a great capacity for analysis and reaction.
Professional framework
The exchanger usually works in an arbitration room of a bank, in a stock exchange or in an exchange company. They are also found in some multinational companies where they manage the flow of currencies into or out of the company.
Remuneration is one of the attractive points of the position. Forex traders earn a fixed salary augmented by a commission (which represents a percentage of the profits made by the forex trader).
However, the percentage is limited to avoid taking too much risk in the hope of receiving large commissions.
Opportunities
There are two opportunities that young graduates can choose from. They are moving towards trading portfolios of peculiar currency derivatives, but also towards selling currency derivatives to large companies.
To access sales positions it is essential to have attended a major business school or an MBA. As for commercial jobs, they are often reserved for graduates of top engineering schools or for holders of a master's degree in science from Anglo-Saxon universities.
Since working in trading is something exciting, very well paid but also very demanding, it is not possible to spend your entire career in this position.
Most of the time, two possibilities are available to you. Either stay in the trading room and work on less stressful products or businesses or leave the trading room and take charge of a team in the treasury field, for example.
Example of a foreign exchange strategist
The role of a currency strategist may seem simple at first glance, but in reality it involves a complex analysis of several factors.
These professionals, who come from diverse backgrounds, create detailed monetary reports that consider economic trends, geopolitical shifts, leadership changes, official statements, and global developments.
By examining these elements, they provide valuable information for businesses to make informed financial decisions and recommend business actions.
For example, currency analysts collaborate with financial experts to forecast trends in foreign markets, taking into account external influences, market fluctuations, and international events that could affect the exchange rates of foreign currencies against the U.S. dollar.
In essence, currency strategists play a crucial role in guiding companies through the complexities of the global financial landscape.
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