Options trader interview questions

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You better walk in with your best investment ideas, coherent thoughts on current events, and an impressive ability to do square roots in your head. The answer to many of these questions: You can read other newspapers, blogs, and finance-related sites, but never skip the WSJ for any reason — especially not if you have an interview that day.

Opinion articles and editorials are very good for these types of questions. As those lower prices move through the system, air ticket prices are likely to decline, which should push up traffic and cause companies to invest in more aircraft, which will help the company. The main downside risks are a general market decline, which could be hedged by shorting a broader index, and stagnation in emerging markets, which you could hedge by longing a defensive or blue-chip index or anything else not dependent on developing countries.

The best way to know all this is to get free equity research from a service like TD Ameritrade or other online brokerage accounts and read through reports and online sources that discuss the company. I told them that I thought the peg would be removed, as the HKD was undervalued, and the only way for it to appreciate was by removing the peg. I went into more detail than that as the conversation progressed, but this was something that few other interviewees mentioned and so it set me apart.

Sales & Trading Interview Questions | How To Prepare

These questions are related to the ones above about stock pitches and trading ideas, but diversification is the key element here.

You would start by asking for their goals or stating your ownand then give an estimate of the percentages across different classes such as equities large-cap, mid-cap, small-cap, international, etc. Make sure not to pick a side — just show that you are knowledgeable about the impact of the different results. One overlooked point is that you also need a sense of how these have been trending over time — the past few years, the past 6 months, and then where they might go in the future.

If you went in and could not answer how oil prices have changed over the past 12 months, your chances would not be good. The logic behind them: If you get the same brainteaser twice, I highly recommend telling the interviewer. And after widespread insider trading and securities fraud, honesty is becoming more and more highly-valued in the industry. I actually had this happen and told the interviewer that I had already heard a particularly difficult brainteaser that he gave me — he told all his co-workers afterward that I was upfront with him, and eventually I won an offer there.

The trick is to put the number with the larger second digit first and then group them into smaller units once again:. So you should think in terms of square numbers instead. Once again, think in terms of known squares: Brainteaser and mental math questions are less likely to come up, but you should still know the basics because you might have to answer questions from clients or traders on-the-spot.

The problem is that many people complete some of this process, but not everything.

Risk Latte - Interview Test # 1:Job Interview of an Equity Options Trader

Which is sort of like making a trade but then not hedging yourself properly: Proper interview prep is the same as properly hedging your trades: In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron.

I got the chance to the second round in IED of Morgan Stanley in Asia. I found on the Internet that many questions are about equity, but not so many about derivatives. This is insightful and amazing!

These are the things that will not be taught in school and students who struggles with interviews should definitely come and check this out! I really appreciate it! I developed some ideas for preparing my global markets interview! Is there a point in applying to wall street firms or am I better off trying to get into a BB here and pushing for a transfer.

Any insight on what I should really focus on? You may want to take pick industry you are really passionate about and focus on them. You may also want to hone your knowledge of investing by going options trader interview questions investopedia. Thanks for visiting our site! Thanks a bunch, just one quick follow up question. When you say pick industries, do you mean things options trader interview questions as financials, tech, etc. Asset classes — commodities, equities. You can then figure out which asset class you enjoy make money stuff envelope about the most.

Just one quick question.

Options Trader Interview Questions | nihoyuyipe.web.fc2.com

I have been working in commercial sales for the last 2 years after graduating from cambridge one of my colleges has great connections with a hedge fund here in london and has booked me an interview with the CEO after realising just how money motivated I am and how I plan to retire at Do you making money enchanting mop any advice on what I should be researching and how to approach this interview?

I think this article should address your questions http: I am a math major so Prada stock exchange listing have all the forex market hours desktop widget and quantitative skills down.

I joined a financial investment club only this past semester and hence have a very minor role in it. I am VERY new to mock trading and I really hesitate on putting down mock trading on my resume for fear of getting grilled on something I am not yet confident in. Would those 6 words be enough to get me at least a first round interview so that I can at least talk about my market views in order to convey my true interest?

I feel like it would be very easy to miss those 6 little words if each resume is only given a minute or two of consideration. Is there anything more I can do based on my circumstances? Perhaps you can do this quiz and see which other divisions suit you? Do you know some books which can help forex trend hero review in this concern?

Probably the answer could be: If this the case: How much time, on average, we need to prepare us properly for an interview? As above the answer could be: How much time, on average, we need to know the market and how it is running? I have this doubts because I am thinking: Depending on how quickly you read, that might be minutes per day. I am currently working for a top-tier BB as a summer analyst in commodities trading tech. My hiring manager, an executive director and the head of my team, seems really friendly to me.

I am 55 years old with a fully vested pension waiting for me when I retire. I majored in art, not finance. I am awaiting the results of the Level 2 CFA exam. I also passed FRM Part 1. At this stage the CFA is not going to do much for you because banks will not recruit you with the amount of experience you have. What you need to do at this stage is find some way to leverage your background to work on the operational side of a PE fund, or perhaps join an asset management firm.

I disagree with just a small part of it. I think that if you are interviewing in Europe the right Equity Indices to check would be the main national ones, mainly FTSE No one really follows theCAC, DAX and these days you should probably know where the IBEX and the MIB are, at least ballpark. Your suggestions sound right on. As you progress in equities you may want to gain different product knowledge i.

You can stay, move to the buy-side, or even start your own fund as you progress in your career. Cash equity is lower margin? Under Basel III, many trading desks will be required to hold capital reserves against market making or counterparty positions they take, but cash equities will not be affected by this.

With capital requirements and new regulations coming on, cash equities could be about to enter such a positive cycle. Adam, thanks for your insights. A few things I wanted to point out through my discussions with someone seasoned in the industry.

If you are interviewing for FICC, would they still ask you questions about pitching stocks or will they instead replace them with questions about pitching an FX, Rate, Credit or Commodity product? But other products like the ones you mention are fine to talk about. I will also add that here, they ask you about articles in the FT as well as WSJ-EU. The article is of outstanding quality as always! Glad you found this helpful and thanks for your feedback.

Wow this was incredibly thorough! The amount of information on this site is staggering. If you read a brain teaser online would you recommend saying so or mostly if the previous interviewer asked you the same question?

Will internship interviews also have such rigorous markets-based questions?

And brain teasers and math questions are likely to come up. Maybe not as difficult as for full-time interviews, but they expect you to do extra work outside the classroom to learn this material.

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