S&T Interview Questions

To prepare for a Sales & Trading (S&T) interview, especially for commodity trading, here’s what you need to know:

Technical Questions to Expect

1. Market Knowledge:

   • Be ready to discuss recent price movements in commodities (e.g., oil, grains, metals) and the factors driving those changes.
   • Questions like: "What market factors would cause a change in the price of crude oil or wheat?"

2. Hedging and Risk Management:

   • Understand how futures, options, and swaps are used to hedge risk.
   • Example: "How would you hedge a position in physical commodities using futures?"

3. Quantitative Skills:

   • Expect questions on basic statistics or probability, especially if you're applying for a quantitative role.
   • Example: "How would you calculate the Value at Risk (VaR) for a portfolio?"

4. Macro and Micro Data Analysis:

   • Be familiar with key data sets like weather reports, WASDE reports, and import/export numbers for agricultural commodities.
   • Example: "How would a drought in the Midwest affect corn prices?"

5. Behavioral/Scenario-Based:

   • Questions assessing your problem-solving and decision-making under pressure.
   • Example: "If you see a sudden price spike in a commodity you're trading, how would you react?"

6. General Finance Knowledge:

   • Be prepared to explain concepts like WACC, valuation methods, or the impact of interest rates on commodity prices.

Best Ways to Prepare

1. Follow the Markets:

   • Regularly read FT, WSJ, and Bloomberg to stay updated on commodity trends and macroeconomic factors.

2. Understand the Products:

   • Learn about the specific commodities you’re interested in (e.g., oil, grains, metals) and their supply chains.

3. Practice Pitching:

   • Prepare a long/short stock or commodity pitch. Be ready to explain your reasoning and the risks involved.

4. Networking:

   • Build relationships with professionals in the industry. Commodity trading is highly relationship-driven.

5. Mock Interviews:

   • Practice technical and behavioral questions with peers or mentors to refine your responses.

6. Internship Experience:

   • If you haven’t already, consider internships in related fields like logistics, trade finance, or even at a commodity producer/consumer to gain relevant exposure.

By focusing on these areas, you’ll be well-prepared to tackle both the technical and behavioral aspects of an S&T interview. Good luck!

Sources: Q&A: I'm an Agricultural Commodities Trader, Q&A: I'm an Agricultural Commodities Trader, J.P. Morgan - Video Interview Invitation Corporate & Investment Banking Summer Analyst, https://www.wallstreetoasis.com/forum/asset-management/sales-trading-interview-guide-gekkos-guidance-part-2?customgpt=1, Physical Commodity Trading