Blog

September 19, 2026

Potential Future Exposure (PFE) Explained: Why It Blocks Trades That Look Harmless Today

Potential Future Exposure (PFE) explained from a trading desk perspective: why a trade with zero current exposure can still get blocked, how PFE is calculated, and why it matters for credit risk interviews.

August 31, 2026

Digital Options Explained: How Trading Desks Price and Hedge Them

Digital options explained from a trading desk perspective: why the payoff is a step function, why delta becomes unstable near the strike, and how desks actually hedge this risk using call spreads.

August 16, 2026

Black-Scholes Interview Questions: How Trading Desks Actually Use It (And Why It Breaks)

Discover how option desks use Black-Scholes in practice, why the constant volatility assumption fails, and how to answer this classic Quant interview question.