Delta One products are financial derivatives that have no optionality and as such have a delta of or very close to one — meaning that for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative. Delta one products can sometimes be synthetically assembled by combining options. For instance, you can be long dlta forward on WTI crude oil at price X by how do delta one desks make money a X strike call and selling a X strike put. Delta one products often incorporate a number of underlying securities and thus give the holder an easy way to gain exposure to a basket of securities in a single product. The delta measures the sensitivity of a derivative’s value to changes in the price of the underlying asset. A Delta One product is a derivative with a linearsymmetric payoff profile. That is, a derivative that is not an option or a product with embedded options. Examples of Delta One products are Exchange-traded fundsequity swapscustom baskets, linear certificates, futures, forwardsexchange-traded notestrackers, and Forward rate agreements. As the price for these products closely track their underlying mmake and the risk free rate, their delta will be close to 1.
Most Wall Street firms have such desks for their clients. Buying a derivative that closely tracks an underlying asset can be easier or less risky than buying the asset itself. Instead of buying bars of gold, a hedge fund manager may buy an exchange-traded commodities fund, or even a gold fund. These derivatives can also be attractive because they typically require little upfront capital. In some cases, the Wall Street firms themselves try to profit from the tiny differences between the values of the derivatives and the underlying assets. In recent years, the desks have generated billions of dollars for Wall Street firms. A reason for the success of this particular desk is the explosive growth of exchange-traded funds — an investment class that tracks indexes or baskets of assets. On average, exchange-traded funds are expected to grow about 20 percent a year, as retail clients, hedge funds and institutions increasingly rely on these products for both exposure to the markets and as protection against volatility. Also helping the growth of these desks is increased demand from investors for computer program trading, which uses mathematical models to execute lightning-fast transactions. Delta desks are a profitable business, and on the surface at least, not a particularly risky one. But like many things on Wall Street, the practice can become perilous if not properly policed.
UBS has not provided any details on the trading losses. The UBS trader suspected of the losses, Mr. Adoboli, was a director of exchange-traded funds on the Delta One desk in London. The losses could have resulted from a trade on a behalf of a client, in which case the bank would have taken the other side of the trade. But the bank may have mistakenly allowed its position to grow excessively, or failed to hedge it. Or the bank could have decided to hold on to the position after making the trade for the client, thereby putting its own money at risk. Whatever the cause, the UBS trading losses are likely to rekindle the debate over proprietary trading, which has drawn increasing scrutiny from regulators since the financial crisis.
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Pack it well. Trending Questions. DL will accept it, but assume no liability for it, so any risk of damage or theft and there is risk, especially of damage would be yours. Participants Regulation Clearing.
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Ballots are LIVE! Polls close February 11, Thread Tools. Apr 11, 14, am. Original Poster. Does Delta allow transporting desktop PCs? I get Delta flights free, because my dad worked there for 30 years He’s no longer around so I can’t ask. Anyway, I was wondering if Delta even allows desktop PCs as luggage I couldn’t find anything on their page. If they do, what would be the best way to go about keeping it fairly protected? And yes, I do know there’s mmoney substantial risk regardless.
View Public Profile. Find More Posts by Deadlyhazard. What’s a desktop PC? Find More Posts by mbwmbw. Dl actually a monitor and a desktop so unlike a laptop, the parts are all contained in a large case. Originally Posted by mbwmbw. Want a desktop PC buy a desktop PC. But the answer is yes you. Even as a carry on probably preferred way just make sure you take it out of the bag for security screening.
If it’s worth more than domestic only and you check it get extra insurance because it will probably be stolen. I’ve used that before with pretty good results, rates look pretty good. Perhaps your father’s employee benefits extend to that? Otherwise, Mobey get a DL Amex, pack it up retail packaging, if available would seem to be the best option to meand check it. Find More Posts by szehui. Originally Posted by Dsks. Yeah, it’s 7 years old. Find More Posts by BobH.
I have checked in a monitor and workstation in the past. Delta will take no responsibility for any damage or theft. As such, get some additional liability insurance when you check it.
DL will accept it, but ddelta no liability for it, so any risk of damage or theft and there is risk, especially of deskz would be yours. Pack it. Find More Posts by javabytes. Find More Posts by indufan.
I know your question is about how to transport your desktop PC, but what do you use a 7 year old PC for that requires you to still keep it? If you move times a year, that should pay for itself in just a couple years after checked bag fees, packing materials, and general makf of packing and moving your desktop. Find More Posts by gooselee. Apr 11, 14, pm. If you’re checking mony, just make sure it is sufficiently padded to handle being thrown around assume it will be thrown. If it’s an All-in-One type design or an unmodified desktop from a manufacturer, it’ll probably be fine if packed well since they’re usually made to be shipped.
When I’ve transported desktops in the past back before I had a laptopI carried mojey on didn’t want to check, built it myself and didn’t trust it being thrown. Since it was a tower, I just did a basic cardboard layer around it with good string around it and the cardboard from disposable pants hangars as a yow. Never had any issues, although that was before the current age of security, but I maje had any issues getting it onto the plane and putting it in the overhead.
Find More Posts by meballard. Yes it can be checked. Since you say you only check it because it’s free when using your non-rev benefits; under those rules, checking it means dekta liability for damage or total loss, like all other items.
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Learn more about equities derivatives in our online course The Equities Trader. The financial world is full of jargon. It sounds great, but what does it mean? Well, a Delta One product is a product that gives the investor the same exposure as if the investor was to own the underlying asset.
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This is as opposed to a non-delta one product like an option, which has an asymmetric payoff, causing price changes in the derivative to be different from the deskks asset. If done correctly, the returns to the investor will now be the same as the return of the index. The investor has a Delta One position to the index — in this case by exactly replicating the index. So, instead, the investor can enter into a number of different contracts or trades that gives the same exposure.
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