Like I said before, quants on option trading desks generally create models that allow traders to hedge portfolios more effectively or create...
Well, there are a few ways to look at it, but is essense when you buy or sell a calendar, you are placing positive or negative view on the forward...
Harry, there is a thing like this already - insurance companies trade mortality derivatives. You see, death of a single person is a tragedy, death...
True. Very much true. Well, you right - i am bored and like to come here to show off :) All I was trying to say was that for a true discussion...
The reason you have such a thing as forward rates is that you can lock in the rates by selling a shorter bond and buying a longer bond. In a...
Well, that was exactly the point. QUOTE]Quote from Don Bright: The larger firms (Billion or more), can probably put a few traders to work,...
Well, in real life (which is different) any flow trader has some kind of prop view on his book, there is no real way to hedge all the risks while...
Really? For example, an average CDS book is worth couple billions in notional and it needs to be properly hedged on a whole slew of risk factors....
Hull is a good intro text book, but has very little to do with real life trading. It is a must-read, though. Pauls book is ok (again, as an intro...
A market maker is not dependent on the market efficency as much as any medium term trader. There are clear studies about some autocorrelation on...
Don't you think there are things more important in life then positions and profits? :)
Correlation ranges from -1 to 1, with 0 being uncorrelated, 1 is doing the same, -1 doing exactly opposite. Nice to remember that correlation is...
If you are looking for someone "free", look at your PM. The person is very bright. Are you looking for occasional advice or actuall work (code,...
I do not think there is any opposition - comparing quants to non-quants in general is like comparing cars to planes. I do not think equity...
Well, it really depends on what you trade - I would really like to see some street-wise kid trading CDO's :D. As for models - my motto is always...
NT is yet another personality that is worth dicussing in depth, especially considering that all of his money was made by being long vol during a...
By no means, quant finance is not opposed to market timing. If you look at many FI funds, they are doing exactly that with the shape of the yeild...
Well, there are plently of people including many other clowns (myself included) who did or do that. I was saying he is a clown for other reasons -...
if anyone is a clown, that's andy lo. nobody on the street takes him seriously. there are plenty of people who claim things like that, but so far...
experience shows that if you show a chart from MC simulation to a chartist, he will find head-and-shoulders pattern in it.
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