What is a rogue trader?

Rogue trader is an employee of a financial institution that begins to act separately, without a permission or consent of an employed institution. Rogue trader carries out trades that are not allowed, often in a way that is ruthless. Rogue traders can lead to significant losses for their employment of institutions. Perhaps the most important example occurred in 1995, when Nick Nick trader bankruptly bankruptcy Barings bankruptcy by involving the Futures Nikkei Index. Some people who wrote and talked about their experiences, because rogue traders describe a slippery slope that started with small unauthorized shops that have gradually wrapped in larger and larger shops and turned into something that the trader could no longer control. Some also described the feeling of justification because they felt good about the shops they did, with an element of feeling, as if they had overcome its employers by producing better shops than those allowed by the employer.

As a rogue merchant, he becomes more confident and aggressive in performing unauthorized trades, risks for increasing the employer. Employers may be extremely volatile as a result of trades carried out without their knowledge or consent, and since markets can be extremely volatile, these losses can happen very quickly. Rogue traders also tend to negotiate with increasing ignorance in terms of money that should manage their employers and clients, and can behave recklessly in terms of their own commissions and future.

aggressive attitudes that can deliver are supported on trade floors. In search of employees of a financial institution, they often look for people with these qualities because people are not sure they will try to conclude agreements.Whether on the floor and may fall into the trap of thinking that it is impossible to slip.

Treters for dishonest merchants differ. When the trader is publicly investigated and discarded, the result of prison may be. If the company can capture a rogue trader before significant damage occurs, it may decide to fire employees rather than start public investigation. Financial institutions are very sensitive to their reputation and the reputation of the market in general and dishonest merchants tend to cause their parent companies to look bad.