Learn / Markets at the desk Go to Overview 1. What the front end prices 2. Interest rate swaps and swap spreads, Pro 3. Index futures, ETFs, and the flows behind them, Pro 4. Answering what's moving markets, Pro 5. DV01 hedging, curve trades, and carry, Pro 6. FX carry and forward points, worked, Pro 7. Options at the desk: implied moves, gamma, and vega, Pro 8. Pitching a trade on a superday, Pro Flashcards, 0 of 18 reviewed Basic quiz Advanced quiz Terms Markets at the desk
0 of 8 lessons
0 of 18 cards How a desk actually uses rates, FX, index products, and options, and how a superday tests it: what the curve prices, how to hedge a curve trade, what carry earns, and how to pitch a trade with a stop and a size.
B Basic4 lessons 1 What the front end prices Fed funds futures tell you how many cuts or hikes the market expects, and inflation linked bonds tell you what inflation it expects. Read both before you say anything about the Fed. 9 min 2 Interest rate swaps and swap spreads A swap trades a fixed rate for a floating one on a notional that never changes hands. It is how most of the market takes or hedges rates risk, and paying or receiving is the first thing to get straight. 8 min 3 Index futures, ETFs, and the flows behind them Equity desks spend more time on index products and client flow than on single stock opinions. Know how a future is priced, how many contracts hedge a portfolio, and how an ETF stays near its value. 9 min 4 Answering what's moving markets Every S&T interview asks some version of it. A good answer names one move, gives a number, explains the cause, and says what you are watching next. That takes ten minutes a morning to prepare. 7 min Q Basic quiz 10 questions, 80% passes A Advanced4 lessons 5 DV01 hedging, curve trades, and carry A curve trade is two bond positions sized so a parallel move does nothing. Sizing them by DV01, and knowing what the trade earns while you wait, is the core skill on a rates desk. 11 min 6 FX carry and forward points, worked The forward rate tells you what carry earns and how far spot can move against you before the trade loses. The same arithmetic tells an investor what hedging a foreign bond costs or pays. 10 min 7 Options at the desk: implied moves, gamma, and vega Desks think about options as positions in volatility. Read an implied move off a straddle, convert vol to a daily move, and work out whether a delta hedged option made or lost money today. 11 min 8 Pitching a trade on a superday A trade pitch is a view, an instrument, an entry, a target, a stop, and a size, said in under two minutes. The view can be wrong. The structure cannot be missing. 10 min Q Advanced quiz 10 questions, 80% passes