Can you take big risk/be a star trader in delta one ?
Can you take big risk/be a star trader in delta one ?
Specifically index trading desk where people trade TRS/Futures
Thanks
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Interested
I worked on delta one for a while, and I would say it would be very difficult to be a “star” trader here. I think there are two main factors that help traders make a lot of money: 1) ability to take risk/prop trade and 2) nice spreads. Delta one doesn’t really have either of those. Spreads are razor thin in equities and it’s really hard to put on any sort of risk with the product
Interesting. Thanks for sharing. Were you on the index side?
I agree the spread is niche these days and it’s more of a leverage platform, but I also thought that there might be some risks/opportunities on the dividend and futures sides (mispricing, market expectation, etc.)
Interesting, TRS on the FICC side is opposite. How much would a typical senior TRS trader make in Pnl?
From my understanding mostly just from the financing spread charged to the client on the swap.
but i was thinking more about on the hedging side, there might be some risks/opp on index rebalancing/dividend/repo risk sides.
Delta one can mean different things at different banks, but from my understanding generally delta one desk has a broad mandate and market access which other desks/buy side don’t, hence can do nearly risk free arbitrage which is very profitable. In the end if you can make decent money without taking much risk isn’t that very nice?
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