The interview questions for sales and trading are a bit of a puzzle because they are both easier and harder than the questions for investment banking.
They’re easier because you don’t have to remember as much, but they’re also harder because you can’t prepare or practice them the same way.
Also, there are a lot of questions that don’t have “right answers.” Interviewers ask them so that they can have a deep conversation about a subject.
Also, because sales and trading interviews are more like “choose your own adventure” games, it’s harder to make broad statements about them.
But if you say you’re interested in corporate bond sales, you’ll get a completely different set of questions.
Before choosing an adventure, though, let’s start with the qualities that interviewers want to see in candidates:
Getting hired as a futures trader is no easy task. The role requires a unique blend of market knowledge, analytical abilities, quick-thinking, and composure under pressure. Standing out from the competition starts withbeing fully prepared to answer the most common futures trader interview questions.
In this comprehensive guide, we’ll provide insider tips and example responses to help you tackle the toughest questions and land your dream job
Why Do You Want To Be A Futures Trader?
This question aims to understand your motivations for pursuing this high-pressure career Be honest about what attracts you to the role Focus on key aspects like
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Your interest in global financial markets and passion for analyzing economic trends.
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The intellectual challenge of making strategic trading decisions.
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The thrill and reward of operating in a fast-paced environment.
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The opportunity to leverage your analytical skills and financial knowledge.
A sincere, thoughtful response demonstrates your commitment to the field and alignment with the demands of the job.
Example: “I’m deeply fascinated by the dynamics of the futures market and how global events impact commodity prices. The constant need to analyze information, anticipate shifts, and make quick decisions is an intellectual challenge that appeals to me. This role allows me to combine my passion for markets with my quantitative skills in a high-energy environment that keeps me engaged. I’m drawn to the rush of trading but also motivated by the opportunity to maximize returns for clients through strategic investments.”
What Are Your Strengths As A Futures Trader?
With this question, interviewers want to understand why you are qualified for the job. Highlight strengths aligned to the key skills needed to succeed. These include:
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Strong analytical and quantitative abilities
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Knowledge of market fundamentals
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Attention to detail
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Ability to think fast and remain calm under pressure
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Effective risk management skills
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Communication and client management skills
Back up your strengths with specific examples for added credibility.
Example: “Some of my key strengths are the ability to conduct rigorous statistical analysis to spot market trends and make data-driven decisions quickly. I also have a solid grasp of market fundamentals across commodities, currencies, and indices that helps me develop trading strategies. Attention to detail is critical in this role and I pride myself on the care I take in analyzing information before making any move. Lastly, I have strong risk management abilities; I constantly monitor P&L and adjust positions to mitigate losses. In my previous role, this helped deliver 15% annual returns for clients amidst volatile markets. These strengths make me well-equipped for the demands of futures trading.”
How Do You Handle Fast-Paced Environments?
Trading floors can be intense and filled with daily pressures. This question tests your ability to operate in high-stress scenarios. Share examples that demonstrate:
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Your capacity to juggle multiple tasks and make quick decisions
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How you stay focused on the job despite chaos and distraction
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Ways you manage stress and avoid burnout
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How you maintain composure and avoid errors in pressure situations
Highlighting aptitude to thrive in the high-intensity atmosphere of futures trading is key.
Example: “Having worked on active trading desks, I’ve developed the capacity to thrive in hugely fast-paced environments. No matter the chaos or distractions, I stay laser-focused on monitoring markets and executing trades smoothly. To handle the daily pressures of this job, I lean on my organizational skills – I prioritize critical tasks and break them into manageable chunks. Staying disciplined also helps me manage stress; I take brief breaks to refresh when needed. Even in high-stakes situations, I rely on my training to remain calm, reassess data rationally, and make shrewd decisions. My experiences have prepared me well to deliver under pressure in this results-driven role.”
How Do You Stay Up To Date On Market Developments?
Futures traders need to stay constantly tuned into market movements. Use this question to demonstrate that you:
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Actively keep up with financial news sites, blogs, magazines, and key analysts’ reports to spot trends.
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Use social media and specialized apps that provide real-time market data.
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Have Google alerts and Twitter feeds set up to get news instantly.
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Regularly check economic indicators, earnings reports, and global news affecting markets.
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Attend industry seminars and events to gain insider perspectives.
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Read expert research reports analyzing short and long term outlooks.
Outline the specific ways you remain updated at all times. Highlight the use of technology, tools, and networks to show your thorough approach.
Example: “Staying updated on every market development is crucial in futures trading, so I use multiple channels to ensure I never miss a beat. My morning routine includes scanning financial sites, trading blogs, and news apps for the latest events and data. I have Twitter alerts and email newsletters from trusted sources like Bloomberg and WSJ to get breaking news instantly. I also subscribe to analyst reports from top banks and firms like JP Morgan and Deloitte to get expert insights on economic indicators, geopolitical issues, and their impacts on markets globally. Beyond this, I attend industry seminars and maintain an active network of fellow traders to exchange perspectives and strategies. My multipronged approach allows me to identify trends early and adapt my trading strategies accordingly.”
How Do You Evaluate Market Trends And Risks?
Assessing markets and associated risks is central to trading success. When answering this question:
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Explain technical and fundamental analysis techniques you utilize such as moving averages, volume, price patterns, economic data, etc.
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Discuss risk metrics and models you use to determine risk-return tradeoff of trades.
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Share specific examples demonstrating strong analytical abilities.
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Outline the process you follow before executing a trade.
The goal is to instill confidence in your systematic evaluation process and risk management skills.
Example: “Evaluating markets requires using both technical and fundamental analysis. On the technical side, I analyze indicators like moving averages, volatility, volume, price momentum and chart patterns to spot trends. I also rely heavily on fundamental data like economic growth, interest rates and liquidity reports to assess overall market conditions. To determine associated risks, I put each potential trade through multiple risk models to measure parameters like VaR, expected shortfall, liquidity risk, counterparty risk and portfolio risk. Additionally, I backtest my trading strategies to model how they might perform in different scenarios. Only after thorough evaluation do I execute trades. My systematic process weighs risks against potential returns, allowing me to maximize profitable opportunities.”
How Do You Control Your Emotions When Trading?
Losing your cool can sink trades quickly in this field. Demonstrate emotional discipline by sharing how you:
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Stick to pre-defined trading rules and plans even in challenging moments.
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Take a break to clear your head before making big decisions in volatile markets.
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Avoid impulsive trading by always thoroughly reviewing data first.
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Focus on facts and probabilities vs feelings or hunches.
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Maintain a balanced view by diversifying and not betting heavily on one position.
You want to instill confidence that you trade with a level head, unclouded by emotion.
Example: “Controlling emotions is critical for success as a trader. I maintain discipline by adhering to my trading methodology, even when the stakes are high. When markets get volatile, I avoid impulsive moves, and instead take a break, re-evaluate the facts and data, and consult my rules and models to make rational decisions. I look at each trade on its merits and probabilities of profit, rather than make bets based on feelings. By managing position sizes and diversifying across asset classes, I avoid the pitfalls of excessive exposure or confidence in one particular area. With this detached, metrics-driven approach I keep emotions at bay and consistently follow the trading plan that works.”
How Do You Manage Risk In Your Trading?
This question tests your risk management expertise. Share how you:
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Use stop losses, position sizing, and diversification to limit risk exposure.
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Employ hedging strategies to offset potential losses.
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Conduct robust statistical analysis to forecast and manage volatility.
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Monitor and control drawdowns within defined limits.
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Manage leverage cautiously to avoid magnifying losses beyond acceptable levels.
Showcase your arsenal of risk management techniques and a sound understanding of balancing risk versus returns.
Example: “Managing risk is core to successful trading, so I employ multiple risk management techniques simultaneously. I use automated stop loss orders on every trade to contain downside. My position sizes are dictated by statistical models that forecast volatility and potential loss – I never risk entire capital on one idea. Hedging with options is key to managing portfolio risks. I run multiple drawdown analyses to fix peek loss limits and monitor them constantly. Also, I use optimal leverage based on rigorous VAR models rather than maximum allowable leverage. My goal is to maximize risk-adjusted returns, not chase absolute returns. This multilayered approach to risk management helps me navigate market ups and downs.”
How Do You Select Which Futures Contracts To Trade?
Demonstrate your ability to identify optimal trading opportunities by covering:
- The technical and fundamental factors you analyze such as volatility, liqui
Sales and Trading Interview Questions, Part 2: Market Questions
Market-based questions span a wide range:
Tell me about a recent news story related to the financial markets and your opinion of it.
Pitch me a stock (or FX, option, bond, or other trade ideas).
If you had $10 million to invest, what would you do with it?
What’s the S?
These questions aren’t “hard,” but the answers change every day, so you’ll need to keep reading the Financial Times (FT) or Wall Street Journal (WSJ).
Pay special attention to the front page and “Markets” sections of both.
We’ve covered hedge fund stock pitches extensively before, and you can follow the outlines and examples there.
But there are a few additional points to note in the context of sales and trading interview questions:
- Length: Aim for 60 to 90 seconds. If you go on for too long, they’ll get bored.
- More Than Just Long/Short Stocks—For instance, you could suggest buying call options, put options, or other derivatives to put your idea into action. You could also pitch an idea about almost anything else, like FX, bonds, commodities, or even goods.
- What makes you think that the price of the security will change, and why isn’t that thought already priced in? What do you know that other people don’t?
- In S, stop losses, time frames, and risk factors are all more important.
One long and one short idea should be based on stocks, bonds, or possibly their derivatives. Another “macro” idea should be based on foreign exchange, sovereign bonds, commodities, or something else in that area.
For some example pitches, refer to the stock pitch or equity research recruiting articles.
When asked where they’d put $10 million, you should always start by asking what their goals are and how much risk they are willing to take. Then, give them high-level percentages by asset class.
It’s pretty simple: younger people can afford to take more risk by putting more of their money into stocks, while older people need to save money because they can’t afford big losses, so they’ll put less of their money into stocks.
But you also need to factor in the macro environment.
For instance, if interest rates are very low or even negative right now, a traditional 60/40 split between stocks and bonds might not make sense, especially if the person’s main goal is to make money in retirement.
It might make more sense to trade the bonds for precious metals, other assets, or real estate—anything that can bring in money or go up in value when interest rates are very low.
In terms of facts and figures, you should have a good idea of the following, both recently and over the past 6-12 months (check Bloomberg and markit.com):
- Stocks: US – DJIA, S
- CDX NA IG, CDX NA HY, iTraxx Europe, iTraxx XO, SovX WE, and SovX CEEMEA helped make this video.
- FX: EUR/USD, USD/JPY, GBP/USD, and RMB/USD
- Commodities: Oil and gold
- Rates of Interest: LIBOR (or SOFR when it’s phased out), the Fed Funds rate, and rates set by the BOE and ECB. T-bond yields on 2 and 10 years.
Why Sales & Trading?
It is thought that most of the students will go into sales.
In essence, it’s the last two parts of your story: describe how you started out in Field X and then moved to Field Y, which was more related to sales.
When you trade or sell [Product A], you want to be judged on how well you do. You also want to [learn the technical details of the product or trading or build client relationships in that area].
Keep in mind that as you move up in sales, the work doesn’t always change much.
Prepare a “success” story, a “failure” story, and a leadership story, and use the STAR (Situation, Task, Action, Result) structure in your answers. This is the same method that was suggested in the article about investment banking fit questions.
You could also think about your good and bad points, but they aren’t as important in S.
One big difference is that you need to choose stories that show the traits that traders and salespeople want to see. For example:
- In a stock investing competition, you came up with a strategy that went against the crowd and did well because of it.
- You had a short amount of time to save a student club from going bankrupt, and you came up with a clever plan that worked out well for everyone.
- You thought about the risk of starting a new business and hedged your bets by testing it in small steps while keeping a part-time job.
- Even though the client at first thought it was too risky, you looked at his portfolio and came up with new strategies that gave him above-market returns.
- Even though you were behind in a debate, you quickly came up with a way to turn your opponent’s point of view in your favor, which helped you win.
The themes are thinking quickly, mitigating risk, performing well under pressure, and generating profits.
There isn’t a big difference between sales and trading in this first question category.
For sales, you can focus your stories a bit more on leadership and communication skills. For trading, you can focus them more on making money and reducing risk. But that’s about it.
Futures Trader interview questions
FAQ
What are the basics of futures trading?
What questions do employers ask when interviewing a futures trader?
It’s a high-stakes, high-pressure environment, which is why employers want to be sure they’re hiring the right person for the job. When you’re interviewing for a position as a futures trader, you can expect to be asked a range of questions about your experience, your trading style, and your ability to handle risk.
How do you answer a futures interview question?
This question can help the interviewer understand your approach to analyzing market trends and determining how much a futures contract is worth. Use examples from past experiences where you used this process to determine the value of a futures contract, and explain how it helped you make decisions about which contracts to buy or sell.
What questions are asked in a trading interview?
Interviewers ask this question to gauge your understanding of market dynamics, technical analysis, and risk management. They want to see if you have a well-defined strategy that helps you to minimize losses and maximize profits while effectively managing the inherent risks associated with trading.
Why does an interviewer ask a trader a trading strategy?
There are a few reasons why an interviewer might ask this question to a trader. Firstly, it allows the interviewer to gauge the level of experience and understanding that the trader has regarding trading strategies.
