Sales and Trading
What is covered
Sales and Trading is a core division within financial institutions that facilitates the buying and selling of financial securities across global markets. The function connects institutional clients with liquidity, market access, and real-time pricing across asset classes such as equities, fixed income, currencies, and commodities. Sales professionals focus on client relationships and trade execution, while traders manage risk, price securities, and provide liquidity in fast-moving markets. Operating at the center of daily market activity, Sales and Trading plays a critical role in market efficiency, capital flow, and price discovery, offering a dynamic, performance-driven environment shaped by market conditions and client demand.
What do sales and trading analysts do?
Like the intro says, Sales & Trading is a division within investment banks and financial institutions that focuses on executing trades, providing liquidity, and facilitating market access for institutional clients such as asset managers, hedge funds, pensions, corporations, and governments. The group operates in global financial markets and is responsible for buying and selling financial instruments, managing risk, and distributing new securities. Sales & Trading sits at the center of daily market activity and is highly sensitive to market conditions, volatility, and flows.
Sales & Trading is typically divided by asset class, with each desk specializing in a specific type of security or market. Common divisions include equities, fixed income, currencies, and commodities, often referred to collectively as FICC.
Within equities, desks may cover cash equities, equity derivatives, or prime brokerage. Fixed income desks often include rates, credit, securitized products, and structured products. Currency desks trade foreign exchange products, while commodities desks trade energy, metals, and agricultural products. Each desk operates with its own risk profile, client base, and trading style.
Sales
The sales function focuses on client relationships and distribution. Salespeople act as the primary point of contact between the bank and its clients, communicating market color, trade ideas, and product availability. They help clients execute trades efficiently, understand market conditions, and structure transactions that meet specific investment objectives. Sales professionals do not typically take risk themselves but work closely with traders to match client demand with market liquidity. Success in sales is driven by client relationships, responsiveness, and understanding client needs.
Trading
The trading function is responsible for pricing securities, executing trades, and managing risk. Traders quote bid and ask prices, take positions, hedge exposures, and manage the bank’s inventory of securities. Depending on the desk, traders may run directional risk, relative value positions, or operate primarily as market makers providing liquidity. Performance is measured through profitability, risk management, and adherence to firm limits. Trading requires strong intuition for markets, quick decision-making, and discipline under pressure.
Structuring
Structuring roles exist on some desks, particularly in derivatives and structured products. Structurers design customized financial products that meet specific client objectives, such as yield enhancement, hedging, or capital protection. This role combines financial engineering, quantitative analysis, and close collaboration with sales and trading teams.
S&T hierarchy
The hierarchy in Sales and Trading is relatively flat compared to other finance roles but follows a clear progression. It typically begins with interns and analysts who support desks through market analysis, trade execution, and reporting. Associates take on greater responsibility, interacting more directly with clients or managing small amounts of risk. Vice Presidents play a central role on the desk, often running meaningful risk books or leading key client relationships. Managing Directors sit at the top, overseeing desk strategy, major accounts, risk limits, and revenue generation while setting the long-term direction of the franchise.
Analyst (1-3 years in role)
Associate
(3-7 years in role)
VP
(7-12 years in role)
MD
12+ years
Intern (1> year in role)
Analyst
Analysts are junior full-time employees who support salespeople and traders. On sales desks, analysts help prepare market commentary, track client flows, and assist with trade execution. On trading desks, they help monitor positions, run risk reports, and support pricing and execution. Analysts are expected to develop a strong understanding of products, market mechanics, and risk.
Associates
Associates take on greater responsibility and begin to specialize on a specific desk. They interact more directly with clients, assist in pricing and execution decisions, and may begin managing small amounts of risk under supervision. Associates are evaluated on judgment, reliability, and growing commercial awareness.
Interns
Interns in Sales & Trading typically rotate across desks during a summer program. They assist with market updates, trade booking, data analysis, and desk support while learning how markets function in real time. Performance is evaluated on market awareness, communication skills, and the ability to learn quickly in a fast-moving environment.
Vice President
Vice Presidents are experienced professionals who play a central role on the desk. On the trading side, VPs may run meaningful risk books and contribute materially to desk profitability. On the sales side, they manage key client relationships and drive flow. VPs are expected to understand both markets and clients deeply and to operate with limited oversight.
Managing directors
Managing Directors are senior leaders responsible for desk strategy, major client relationships, and revenue generation. They oversee risk limits, hiring decisions, and long-term direction. MDs are accountable for performance at the desk or franchise level and often represent the firm to its largest clients.
Salary ranges (USD)
Sales & Trading Compensation Ranges (U.S. Averages)
Total Annual Compensation = Base Salary + Bonus
Compensation Range
Intern (Summer) $10K – $20K
Analyst $120K – $200K
Associate $180K – $300K
Vice President $250K – $500K+
Managing Director $500K – $2M+
Compensation in Sales & Trading consists of base salary and annual bonus, with bonuses closely tied to individual, desk, and firm performance. Pay is more variable year to year than many other finance roles and is directly influenced by market conditions and profitability. These ranges represent typical outcomes and vary widely based on asset class, desk profitability, market volatility, and individual performance. In strong market environments, compensation (particularly bonuses) can increase significantly, while weaker years can result in sharply lower payouts.