A New Era of Ultra-High-Paying Jobs

Context

Currently, ultra-high-paying placements have become the talk of the town on Indian Institutes of Technology (IIT) campuses, as pay offers far exceed common imagination. Annual packages of crores of rupees being offered to new B.Tech graduates are attracting the attention of not only students but also parents and the education community.

Related Highlights

• Recently, Netherlands-based global trading company ‘Optiver’ offered a package of ₹2.5 crore per annum to a computer science student at IIT Hyderabad.
• Just last year, an IIT Madras student was offered ₹4.3 crore per annum by the American Wall Street firm Jane Street for the role of a quantitative trader. Clearly, high-paying placements at IITs are no longer the exception but have become an emerging trend.
• In 2021, the number of campus offers with packages exceeding ₹1 crore was approximately 60, while by 2025, this number increased to approximately 180. Offers exceeding ₹2 crore may be low now, but their growth rate is rapid, indicating that this trend is becoming sustainable.
• In the current placement season, several financial trading companies made offers ranging from ₹2.2 crore to ₹3.6 crore per annum on Day 1 at IIT Bombay. However, this is happening at a time when discussions about the uncertainty surrounding traditional jobs due to Artificial Intelligence (AI) are common.

Companies with High-Paying Offers

• Companies like Optiver, Jane Street, Hudson River Trading (HRT), Da Vinci Derivatives, NK Securities, Rubrik, as well as Citadel Securities, IMC Trading, Graviton Research, APT Portfolio, Atlas Research, Quadeye, Quantbox, and The Trade Desk also fall into this category.
• These companies offered these offers for roles such as trading, quantitative trader, algorithmic developer, and quant researcher.
• Nearly 70% of these companies repeatedly recruit from IITs. While previously, their recruitment was primarily limited to the older IITs, institutions like IIT Hyderabad, IIT (BHU), and IIIT Allahabad and Raipur have now joined their regular talent pool.

Calculating High Pay Offers

• The reason behind these high packages lies in the business model of these companies. Most QT and HFT firms are medium-sized proprietary trading companies that generate revenue through price arbitrage between markets.
• These companies earn a meager profit of just $0.01 per share by buying and selling shares on platforms like NASDAQ and the New York Stock Exchange. However, when millions of such trades occur in seconds, the total profit becomes extremely high.
• In HFT companies, if a software engineer reduces a program's execution time by even a few microseconds, it can generate millions of dollars in additional profit each month. Because the engineer's contribution directly translates into profit, companies are able to offer high salaries and bonuses.
• Low overhead and small teams of 200–500 employees allow these firms to distribute a significant portion of their trading profits to employees. In many cases, up to 40% of a ₹2 crore package is allocated as performance bonuses.

Skills and Roles

• These companies primarily offer three types of roles:
  • Quantitative Trader: They make decisions based on game theory and probability on the live trading floor.
  • Quantitative Researcher: They develop trading strategies using advanced statistics, stochastic calculus, and machine learning by discovering patterns in historical data.
  • Low-Latency Developer: They develop ultra-fast trading engines and specialize in areas such as memory management and concurrency.
• These roles require a strong grasp of algorithms, low-level systems, probability, linear algebra, and game theory. In-depth knowledge of financial markets is not mandatory, but an understanding of market microstructure and derivatives is an added advantage.

Selection Process and Preparation

• Prior work experience is not required for these positions. Companies seek young candidates with exceptional mathematical ability, programming proficiency, and the ability to maintain composure under pressure.
• The selection process often involves several rigorous stages, including brainteasers, probability-based puzzles, and low-latency C++ coding tests.
• Most companies prefer a pre-placement offer (PPO), which requires a rigorous eight-week internship.

Foreign vs. Indian Packages

• Total compensation (CTC) includes base salary, bonus, relocation or sign-on bonus, RSUs, and profit-sharing. Since most roles are in expensive cities like Amsterdam, London, New York, or Hong Kong, these packages can range from ₹2 crore or more in Indian currency.
•  Packages in the range of ₹60 lakh to ₹1.2 crore offered in India can often be considered comparable to foreign offers, considering the cost of living and taxes.

Opportunities and Challenges

• These jobs offer both financial appeal and intellectual satisfaction, especially for students interested in solving math and probability brainteasers.
• However, the live trading environment is extremely stressful, where even the smallest mistake can lead to significant losses. There's a risk of burnout, and career opportunities can often be limited to fintech.

Conclusion

• The current times present a unique talent paradox. While AI is limiting traditional IT jobs, specialized human skills are more valuable than ever. The quant and high-frequency trading sectors are the most obvious examples.
• With a ₹2 crore package, immense pressure also comes with a requirement for composure and resilience. Long-term success comes only to those who can combine talent with balance and patience.