How would you answer in an interview: What is S&T?

uncy's picture
Rank: Baboon | 137

How would you answer this question in a succint manner using industry terms for a SA role?
(market making, flow trading, slippage on the bid ask spread?)

Edit: I am interview for a sales role

Comments (12)

Jan 18, 2020

Sales and trading

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Jan 18, 2020

aww nice one dude!

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Jan 18, 2020

Why are you applying for an S&T role if you can't even explain what S&T is? Do some research-these forums are a gold mine

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Jan 18, 2020

I know what it is I am just looking for how others would answer the question so that I can compare against mine. I just typed it out it disappeared.

Jan 18, 2020

If you actually were kind and wanted to help someone out you could have just answered my question. I am looking for ways my usual answer can be improved. Instead you contribute nothing. Why did you even waste your time?

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Jan 18, 2020

You really can't get mad at people making jokes because the answer is literally sales and trading.

Sales build relationships with clients by pitching research and ideas and because of these pitches they hope to bring in orders by volume. Next they ring up the trader that offers the sales person the price they are willing to fill the order at and in what quantity. There is back and forth because sales make money by volume and traders make money from spreads ie the better the price the more volume but les money for trader and vise versa. Traders decide to give these prices based off of many different factors including risk limits, internal research, shares on hand and order flow and the list goes on.

Let me know if this answered your question and also this is very high level and mostly tuned to equities, FICC is different because of the offering of debt and the difference between that and secondary trading but that's a whole different post

Jan 18, 2020

Thank you very much. It answered my question and is along the same line of what I would have said. Do you work in S&T?

So the idea generation comes from trading then goes to sales who then pitches the client? Assuming a junior role makes no pitches. How much of the S&T is inbound? As in clients calling in with a problem vs us pitching something we think cann benefit them

Jan 18, 2020

It is FX rates so yes it is FICC.

I have an interview coming up with a Top BB for a sales SA position in Sales screens were FX rates but I am not sure if its rotational so I should probably broaden to all Derivatives and FICC. I have been trading my own portfolio for some years now and have working knowledge of vanilla Futures and Options (mostly sell side vol) and some of the the corresponding greeks. I have a working knowledge of Theta, Delta, Vega but only a definitional knowledge second derivitives Gamma, Rho, Zeta and not sure how they are taken into consideration. I have working knowledge of basic puts, calls, straddles, strangles, iron condors, but that's about as far as I have done in real life. If you were in my shoes how would you prepare in general? I plan to have all these questions answered but if you can provide advice on others its greatly appreciated

o What is S&T exactly - Using industry lingo
o How does S&T make money - Again Using industry lingo. Will I need to know all the different types of trading?
o What are the main Drivers affecting the FX rates market
o How we make money (as the bank) on swaps
o How does the yield curve and its corresponding movement affect derivatives S&T
o Which pairs should I know? Historically? Outlook?
o How do corporations usually hedge realistically
I am generating a list of questions that I think I can answer myself but any help is needed
o Economic outlook - Which countries should I be focusing on besides USA
o 1 or 2 stock picks?
o What the Fed is doing and how it reverberates through derivatives/fx markets
o What other banks are doing
o Market Outlook
o Swaps,
If you have any experience in S&T and giving interview I would greatly appreciate any additional topics I should know

Jan 19, 2020
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