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fancyfredbot | 1 month ago

The salesman can't tell you how to hedge the product. If you can't hedge you will lose that 5% upfront pretty fast.

You need quants and sales and trading. Which is why all banks have all three.

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lordnacho|1 month ago

> The salesman can't tell you how to hedge the product. If you can't hedge you will lose that 5% upfront pretty fast.

> You need quants and sales and trading. Which is why all banks have all three.

I don't think anybody said you can just run without one of those. But it seems the magic is in spotting the fish, not hauling it in.

fancyfredbot|1 month ago

Spotting fish who you can overcharge is not really a sustainable business model. You can do it once but your colleagues will find out, move to a competitor, and next time they'll rip them off a bit less than you did and you'll have to rip them off less than that.

There is, eventually, a shortage of dumb money. The sustainable way of making money involves competition, and this involves knowing the "right" price within a tight tolerance.