so it looks like most ppl's experience is mental math, probability brain teasers, fit questions for trading interviews. Anyone had experience being asked a lot of technical questions, like the ones in the WSO technical interview guide? like stocks, bonds, currencies, derivatives?
Trending Content - Sales and Trading Forum
Career Resources
It depends on where you are looking. In my experience the vast majority of prop firms do not ask anything incredibly technical and many do not even bother asking you anything about trading because they assume that they'll teach you on the job and they care more about your raw brain power, drive, and psychology (handling the stress and whatnot). Some will ask you to explain what an option/future/swap/etc. are, but that is about the extent to which those questions are asked at most places.
Anything technical, for entry level stuff, should be able to be answered by reading Hull (I'd go with Hull over Natenberg because Natenberg will only cover options for the most part). BBs tend to be a bit different since you may end up in more exotic or illiquid products where there is less actual focus on trading and quick mental math/decision making.
Depends on a) your specific interviewer b) how you lead it
One of my interviews ended with me talking about the different methodologies of pricing CDS and taking him through them mathematically, the reasons behind the CDS basis, how I would improve black scholes etc.
mm2: I think it is going to be a bit different if the OP is aiming to interview with a prop firm, although what you say is correct from what I've heard at BB S&T groups. Very few props do much trade in CDS/ABS/etc. and there isn't much done with exotics and other non-exchange traded stuff, either.
What sort of questions can we expect in a BB S&T interview?
Dynamic Hedging by Taleb and Option Volatility & Pricing by Natenberg and options, futures, and other derivatives by Hull? Just making sure...
Stop asking so many questions that have been answered--you're wasting your time. Read the basics--Dynamic Hedging is so far beyond what you need for an entry-level interview and probably far enough over your head that it isn't worthwhile to pick-up right now since it'll probably confuse you without a pretty firm grasp of the basics. Just read Natenberg and Hull and you will be able to answer any question they can realistically throw at you and expect you to understand (this is assuming you're looking for either an entry level position or internship).
Natenberg + Taleb will get you sorted.
I think the poster above has got it wrong, its not about what they could ask you, its about you knowing all that stuff perfectly and allowing the interviewer to stretch you further. Your chances of getting the offer improve tremendously if you end the interview talking about more advanced topics and being able to sort of hold your own.
Just remember, do not memorize but understand the material.
also another great book is Tim Cracks Basic Black Scholes book
The fact you are recommending Dynamic Hedging for a person trying to interview for an entry level position shows how dumb this is. Over 1/2 that books covers stuff completely untopical to virtually all props and at a higher level than BBs ask in interviews. They aren't going to expect someone new--nor will you likely have a grasp to impress anybody--discussing the relative merits of different hedges for double KO options with large short gamma positions
Sint quia minima velit sed. Delectus cum sed eum est ut. Et ut amet qui sit velit debitis. Ab adipisci et voluptate et voluptatum minima.
Saepe tenetur maxime dolores vel sit. Voluptas corporis tenetur sunt reprehenderit aut. Et eum a sit iste beatae sed soluta eum.
Facilis provident praesentium consequuntur. Ducimus sit hic doloremque et quasi enim. Aliquid enim quibusdam cupiditate sequi dolorem sapiente.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...