I have the final round interview for Flow Traders (Ams) coming up. I was wondering if anyone had any advice on it. From what I’ve found so far it seems to be a lot of arbitrage and hedging? Any advice would be massively appreciated
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Hey there! Congrats on making it to the final round. You're right, the Flow Traders final round interview does involve a lot of arbitrage and hedging, particularly with ETFs. Here's a bit of what I've gathered from previous WSO threads:
The case study will likely involve ETF hedging and mispricing spotting. You'll need to understand the ins and outs of ETF arbitrage.
For example, if ETF A is 50% stock X, and ETF B is 25% stock X, you might be asked to hedge ETF A in terms of ETF B as well as stock X. To hedge in terms of stock X, you could buy 1 share of ETF and short 1/2 of stock X to be delta neutral. In terms of hedging A with ETF B, you could be long 1 share ETF A and short 2 shares of ETF B.
Be prepared for pressure. Some candidates have reported that the interviewers might try to throw you off your game by saying things are wrong that are actually correct, or saying your mic/video cut out when it didn't. They want to see how you perform under pressure.
Remember, this is just a general guide based on the most helpful WSO content. The specifics of your case study might differ. Good luck, and remember to stay cool under pressure!
Sources: Flow Traders Test, Flow Traders Case study
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