<t>QuoteThis is useful for bank traders when options expire(exercised) in FX. They are usually able to move the market right before the seconds of exercise time of options if they know their clients have big positions. However it's harder and riskier to do it for the spot stop-loss orders, sometimes...

<t>QuoteAlso, one senior was telling me caplets are considerably insensitive to foward vols while Bermudan swaptions are extremely sensitive to forward vols. Can the expert guess what are the forward vols this senior is referring to and how to understand his statement??This is analagous to the forwa...

more leverage

<t>I completely agree with Daveangel, having had both jobs.But since no one is going to fight the other case, I'll give some plus points for the FoF.- You will learn to detect b/s very quickly, as you will be surrounded by b/s artists (this is a surprisingly useful skill)- You will meet some incredi...

I'm guessing that the bond pays SA, while the coupon fixes Annually. If this is the case, then the Bond equivalent yield is the yield on the bond based on Semi Annual coupons.

To clarify, in all the places I've worked, equity delta of $1m, means that if the stock price changes by 1%, your PV changes by 1%*$1m = $10kThis is of course very different from the rates world.

Delta in this case is usually change in PV for 100% move in underlying.

<t>This is a massively subjective question.My first two jobs were in slightly bigger shops than the one you are describing.First was run by 2 absolute a-holes who paid they're staff nothing.Second was run by a very generous guy, who I now realise having moved into a "big" I-bank paid way above the s...

What are you trading?Asset class?Complexity?

<t>I think it depends what you mean by "need" stoch vol model.You are right with the option on vol bond.However, almost all structures would benefir from an "accurate" stoch vol model.i.e. anything that has heavily OTM or ATM strikes. You can price these without stoch vol, but more often than not, p...

Head of equity exotics?Heard that the head of trading at RBC is super young.

<t>It's not a complicated product, that's not the point.It's a thin market. There are no natural sellers of long-dated vega, especially for low strikes. Vol curve is very steep.30yr vol is 18%+ vs 1y Vol at 8%.It's not possible to efficiently hedge that far out on the vol surface and make money. Thi...

Show me the price for a 30yr risk reversal on USDJPY...It's not unhedgable per se, but I would bet that all the dealers on the street have massive positions warehoused.

Why don't you list the ones you've thought of....Then I'll add any I can think of that you're missing.

My bad:Change in Vega for change in Spot level