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    I have heard of many desks in banks with Delta in their title, such as Euro Delta. What does this mean? I understand that they deal with derivatives
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    i've heard of delta one desks... they trade derivatives with a delta value of 1, meaning that a 1 unit move in the underlying asset moves the derivative price by 1 unit too.

    hope that helps a bit
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    yeah, I have always though (and I could be wrong, so please someone else correct...), such desks deal with deriv products that behave linearly in the underlying.

    i.e. what some might call boringly.
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    yeh that sounds about right, i've heard "linear-derivative desks" and "delta one desks" used interchangeably. I guess it's similar to trading the actual underlying itself except if there is a large fluctuation then they suddenly become 'sexier' lol
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    (Original post by drexelburnham)
    I guess it's similar to trading the actual underlying itself except if there is a large fluctuation then they suddenly become 'sexier' lol
    That's gamma... The point of delta one is specifically that they don't.
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    You guys are correct about Delta One, however a Delta desk is usually just a swaps desk, for obvious reasons
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    (Original post by robotic_dancer)
    I have heard of many desks in banks with Delta in their title, such as Euro Delta. What does this mean? I understand that they deal with derivatives
    Depends how desks like to name themselves. For instance detal one equity in our trading floor just implies ETF product traders, where underlying moves by 1 your index moves by 1.

    For instance you try to mimic exchange index with delta of 1..... that is a 1% move in the underlying results = very close to 1% move in the derivative like futures index you have.

    if you mean DV01 then thats different which just implies the dollar value for one basis point change in interest rate.
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    Equity Swaps, Futures, ETFs etc
 
 
 
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