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Why Trading Needs Tech Skills

Written by Anthony Cheung | Jan 21, 2025 12:00:00 AM

"Trading today is about more than instincts. It’s a world where coding skills and a deep understanding of technology provide a distinct advantage" - Christine Lagarde, President of the European Central Bank

How Technology Transformed Trading

Over the past two decades, trading has shifted dramatically:

Algorithmic Trading: Approximately 60-70% of equity market trades in the U.S. are now executed by algorithms, according to a report by CNBC.

Big Data: Traders rely on enormous datasets, from market prices to global events, to identify patterns and opportunities.

Automation: Repetitive tasks, like trade settlement and reporting, are now automated, reducing human error and freeing up time for strategy.

Without coders, data scientists, and tech-savvy individuals, modern trading simply wouldn’t function.

The Skills Traders Need Today

Here’s how your STEM or coding background translates into trading roles:

Programming: Languages like Python, C++, and Java are staples in trading. They’re used to build algorithms, optimise systems, and model risks.

Data Analysis: Knowledge of data visualisation tools and statistical methods helps identify trends and develop strategies.

Problem-Solving: Trading is fast-paced and unpredictable. Coders often help tackle real-time challenges, like minimising latency or resolving system bottlenecks.

Real-Life Example: How Coders Drive Success

Imagine a team of traders facing a bottleneck because their system can’t process high-frequency trades quickly enough. A computer science graduate steps in, optimises the code, and cuts processing time by 50%. That optimisation translates into millions of dollars in potential profits.

Why This Matters for You

Your skills in coding and problem-solving can directly impact markets and profits. The challenges are exciting, the environment is dynamic, and the opportunities for growth are immense. Trading offers a rare mix of high-tech and high-stakes - a perfect match for STEM talent.

Conclusion

Trading today isn’t just for finance majors. It’s a playground for tech enthusiasts who want to see the real-world impact of their skills. If you’re curious about how your coding expertise can fit into trading, there’s no better time to explore this intersection of finance and technology.

Ready to make the leap? Register for a free Markets simulation below!