What are the most quantitative trading desks on the sell-side?
I have a background in engineering (undergrad and masters) and I was wondering which sell-side desk at a BB will test my quant skills the most.
I have a background in engineering (undergrad and masters) and I was wondering which sell-side desk at a BB will test my quant skills the most.
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what do you mean by most quantitative? DO you mean full of coding where traders are algos/systems for systematic platform? or using game theory/basic math intuition for trading complex products? it depends.
Obviously I'm talking about traders here not quant/structurers
The primary mandate of the desk is to make markets and hedge risk, some products that are traded will naturally be easier to hedge due to their liquidity and the simplicity of the product. Some desks like electronic market making will be more complex from a system perspective but the underlying product may not be.
By quantitative I mean which desk trades the most complex products that have many sensitivities that require complex deduction and hedging ability/risk management on the part of the trader.
Exo and QIS
....ok? so you can use chatgpt, nice?
Any vol desk will require quant skill set. Exotics more so, but rates vol, fx options, and macro credit are great “quanty” desks to sit on with great buy side exits. XVA trading would also be good to look into
What is traded on a vol desk? Like an equity options or swaptions desk?
Vol=non linear. Vol desks will trade any non linear products in their asset class. If it is more bespoke then it might get kicked to a separate exotics desk but at some banks the line is pretty thin.
In terms of FICC, fx vol is not quanty (at least not the trading side). fixed income linear + vol is quantitative. Commods can be fairly quantitative as well (just judging by the number of quant trading firms in the space), but that could also be due to illiquidity allowing for edge to be formed.
edit: whoever is down-voting this is fine to have that opinion, but have experience in the space (and know quite a fxo traders who would agree.... a lot of them wish they were in rates linear/vol or eq vol instead)
May I ask what math level will be required for a FX vol trading desk? Many thanks!
Who cares honestly? The world is run by sociable chads who can negotiate, not nerds who are too busy worrying about quantitative desks. Quantitative has ruined S&T in the 21st century.
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