Trading Idea for Interview

Hey guys. I have a Summer Analyst interview at a FX S&T desk tomorrow and am currently brainstorming trading ideas. Does anyone here have any suggestion?

Additionally, if there is anyone that has been through specifically a FX interview can you give me some tips on what questions to expect?

(There is lots of info on S&T at other desks but I am having trouble finding stuff related to FX)

Thank you!

 
Best Response

THe basic idea has to come from you, remember you dont have to come up with something incredibly complex or ground breaking. If your trading style/edge is going to come from constantly ocming up with groundbreaking ideas than it will be tough. What you really need to make sure to focus on is the execution. Need to make sure you cover the following things:

-What is the catalyst for the trade, basically why is the time right now? why not next week? -What is your expected best case getting out point? if everything goes right, where will you close out the position? -What is your stop loss point? (hint: figure out your stop loss point, and then figure out the sizing on the trade from there. If your stop is 90, and the stock is at 100 right now, then decide whats the max loss you can take on the trade, ie 1k, so then you can say you will buy 100 shares, so that at your stop loss of 90, you lose your max allowable loss). -What are the top 5 risks of the trade? -What are the different results you can generally expect (basically just think through various scenarios of the world and see what the result should be in each one).

 

I also interned for a while. While they don't expect you to come in and be a whizz kid, they do expect you to be completely up to date with all of the key movers. Indices, currencies and even commodities. My advice to you would be to read read read and then read some more. If you can wow them in your first week, you'll find that you may stand a good chance of a great offer later down the line. Good Luck.

 

Consider an Aussie short. Most rate hikes already priced in (see last RBA raise and minimal exchange rate impact) so if they don't hike on schedule then the Aussie would likely see downside. You could sell an increase in vol, which would help to unravel the carry trade, which would be very negative for the Aussie. Etc.

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 

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