Delta one products in Sales and Trading & How You Can Crack the Delta One Team
#Deltaone desks give their clients exposure to a product (stock index, ETF, or even a single stock) without the client actually buying the underlying product. Delta One products offer investors the same exposure as if the investor were to own the underlying asset. It’s an open, efficient, and reliable ‘synthetic’ trading solution to reduce operational risk and increase cost efficiencies.
Aspirants who are keen to work on this team can apply for graduate analyst roles with firms like BNP Paribas apart from the bulge brackets. Students can also apply for S&T internships that allow rotations so they can get exposure to delta one desk. While you must know the Greeks well, a solid programming and mathematical understanding would be valuable especially if you’re targeting quant trading firms or if you’re inclined towards structuring. So the recruitment process will be similar to sales and trading hiring.
9 Interview Questions That You Must Know:
1️⃣ Why sales and trading?
2️⃣ Can you give me an example of how delta hedging works?
3️⃣ Pitch me an equity derivative stock.
4️⃣ If you have $20 million, how would you invest it?
5️⃣ How is delta non-linear? What does that mean?
6️⃣ What do you understand about Implied Volatility?
7️⃣ How does an equity derivatives desk really make money?
8️⃣ Tell us about a situation where you came up with an
3️⃣ Pitch me an equity derivative stock.
4️⃣ If you have $20 million, how would you invest it?
5️⃣ How is delta non-linear? What does that mean?
6️⃣ What do you understand about Implied Volatility?
7️⃣ How does an equity derivatives desk really make money?
8️⃣ Tell us about a situation where you came up with an
innovative solution under time pressure
9️⃣ Tell us about a time that you had to deal with failure?
9️⃣ Tell us about a time that you had to deal with failure?
👉Bonus Q: Explain the Black Scholes formula and its limitations
What You’ll Need: Apart from a Bachelor’s degree in finance, economics, quant finance, or other niche specialisations (rocket scientists welcome), you’ll need to show a keen interest in financial markets to decipher trends, identify what lies behind price fluctuations, and an understanding of the impact of macro events on companies. You’ll be assessed for your ability to thrive in fast-paced environments and strong interpersonal as well as persuasion skills, since financial analysts interact with many different traders, analysts and sales.
Give us a 👍 if you found the tips useful, and comment AM or S&T to get more such tips!
---------------------------------------------
We help university students like you to get into Investment Banking, Banking, Property/ Conglomerate and Advisory/ Consulting.
Follow us on Instagram (ig: hkcareer / ibankcoaching) to know insider tips about grad job / internship hunting.
Visit https://bit.ly/hkcareersaboutus to know more about the result-based career coaching program.
