Intuition for the forward FX equation

Every quant knows the expression that defines a forward FX rate on date t with maturity T: where B_f is the foreign discount factor and B_d is the domestic discount factor.┬áBut what is the best way to explain this intuitively? Here is my suggestion. Let's pick an example pair, say EUR and CHF, and see … Continue reading Intuition for the forward FX equation


Understanding trader jargon

In this post I present some tips on how to understand fixed-income trader jargon. If you are a quant working closely with swaps or options traders (as I was once), then you won't get very far in a discussion unless you have a certain amount of fluency with the following terms. Some were passed on … Continue reading Understanding trader jargon