Things to know for a SA for S/T interview

Basic market trends (what's been happening to Fed Funds...), recent stories in WSJ, opinion on a stock, be able to tell a story (especially if you are more interested in sales)

good luck

Not to flip out on you personally man, but does anyone think logically on this board? Hey, maybe I should look at the Vault Guide to Finance Interviews and the Vault Guide to Sales and Trading. Maybe that could help in a SALES AND TRADING INTERVIEW? Novel idea?

Vault Guide for S/T is decent search the forums there are tons of resources you can read. Besides logic/brainteasers I was almost always asked scenario type questions. For example what do you do if you are a salesman and you have been working on something for a customer and the customer takes your offer to a competitor and they undercut you, how do you get the customer? If you are a trader what do you do if a customer backs out of a trade? If you are a trader and you make a mistake on a trade what do you do?

"If you are a trader what do you do if a customer backs out of a trade? "

this is not generally an issue. this is an issue for the salesman...the better question is, what if the sales guy comes and wants you to let his custie out of a trade.

Thanks everyone, minus closer121...I asked a specific question and the vault guides and such are very general, and usually focus on full time positions as opposed to an SA interview...especially an interview of someone whom isn't in a finance major, which I assume may have an interview geared to a little different set of questions. I merely wanted to know the basic stuff that I should know even though I am not in finance courses, and I again thank the rest of you for your comments and advice.

For example what do you do if you are a salesman and you have been working on something for a customer and the customer takes your offer to a competitor and they undercut you, how do you get the customer? If you are a trader what do you do if a customer backs out of a trade? If you are a trader and you make a mistake on a trade what do you do?

I would love to hear some answers to these questions from experienced salesmen / traders.

"For example what do you do if you are a salesman and you have been working on something for a customer and the customer takes your offer to a competitor and they undercut you, how do you get the customer? If you are a trader what do you do if a customer backs out of a trade? If you are a trader and you make a mistake on a trade what do you do? "

1) There a decent number of clients like this. you just stop showing your best ideas to them

2) this isn't really possible....they can ask to be let out, and then we go from there.

3) define mistake.... generally, your price = your risk= you live with it.

this isn't really possible....they can ask to be let out, and then we go from there.

What do you do if the client asks to be let out? Or if the salesperson asks on the client's behalf?

i apologize for flaming you man. i had a bad day.

It's all good...no hard feelings...seeing as how we all don't really even know each other...lol

"What do you do if the client asks to be let out? Or if the salesperson asks on the client's behalf?"

it depends. what's in it for me?

if you do a trade, you're done. you can't just reneg it. so i would generally just charge them whatever the unwind cost is of the trade.

now if it's some great relationship, maybe we do it at a scratch, make a note of the loss, and load it into some other trade.

what would you do?

if you do a trade, you're done. you can't just reneg it. so i would generally just charge them whatever the unwind cost is of the trade.

now if it's some great relationship, maybe we do it at a scratch, make a note of the loss, and load it into some other trade.

what would you do?

At what point in the trade execution process does the client become legally bound to the trade? Is this governed by oral contracts? Generally, oral contracts do not stand over $500 (in the non-financial world).

Do you have legal recourse if the client says "fuck you" after you tell him he cannot reneg.?

"At what point in the trade execution process does the client become legally bound to the trade? Is this governed by oral contracts? Generally, oral contracts do not stand over $500 (in the non-financial world).

Do you have legal recourse if the client says "fuck you" after you tell him he cannot reneg.? "

trades are usually agreed verbally and then confirmed in writing. if they dk you and it's your first trade, then the recourse is limited i guess if the guy skipping the country. but that's why you do some basic research into your counterparties.

there have been issues over who is actually authorized to trade on behalf of the counterparty.

it's just very unprofessional, and other dealers would be reluctant to ever face someone like that again. and i'm sure there've been lawsuits though i've never been involved in that sort of thing

what would you do?

Well, with that information, I would tell them they cannot reneg.

If it were a "great relationship," they would not attempt to reneg. in the first place. However, if I truly thought I could pull long-term money off a client, I would consider cutting losses and moving on to the next trade.

That said, I would be very careful about verifying whether or not a client actually wants me to perform a trade and is not just brainstorming or shooting the shit to avoid errors on my part.

And if they said "fuck you," I would get the P.O.S. one way or another. (Legal, reputation, or otherwise)

I'm sure due diligence pays off.

"That said, I would be very careful about verifying whether or not a client actually wants me to perform a trade and is not just brainstorming or shooting the shit to avoid errors on my part."

well, honestly it's usually pretty clear. if you show a level, and the guy says "ok" or "thanks" or "that's great, i like that" it doesn't mean anything.... i need to have them tell me i'm "done"...and if they are unclear you just ask if the trade is done or not....

there are certain other terms that are used, but more interdealer that also signify assent to a trade...like yours, mine, given, taken, hit, lift... just like anything else it has its own terminology.