Sales and Trading Interview Questions and What They Test

How the interviews are structured

Formats vary by bank and by stage. A first round is often a video interview or a call with an analyst or associate. The assessment centre or superday puts several interviews back to back with people from the desk, and can include a group exercise. Expect a mix of the categories below, and expect follow-up questions on anything you say. The follow-up is where most people lose marks.

Motivation questions

These come up in almost every interview, usually first, and they set the tone for the rest. Interviewers are listening for specifics. Every candidate says they like fast-paced environments and following the markets, so an answer only lands if it shows you know what the job is and have done something because of it.

• Why sales and trading?
• Why sales and trading and not investment banking? (The comparison guide covers the differences.)
• Why this bank?
• Sales or trading, and why?

Market awareness

You will be asked what is happening in markets, often in the first few minutes, and then pushed on whatever you say. Interviewers want to see that you follow markets for their own sake and can explain why prices move, not just that they moved. If you are unsure of a number, say so. A hedged, correct answer beats a confident wrong one.

• What is happening in markets at the moment?
• What did the central bank do at its last meeting, and what do you expect next?
• What is your view on a market you follow?
• Pitch me a trade. This one has its own guide: how to approach the pitch question.

Technical questions

Technical questions test whether you understand the products behind the headlines, and each answer tends to be followed by a harder question. Typical examples:

• If interest rates rise, what happens to bond prices, and why?
• What is duration?
• How would you price a zero-coupon bond?
• What does an inverted yield curve mean?
• What happens to a currency when its central bank raises rates?
• What is a credit default swap?
• Why might shares fall when interest rates rise?
• What is the difference between a forward and a future?

Knowing the definition is the minimum. The interviewer is checking whether you can explain the mechanism, put a number on it, and say what would change the answer.

Brain teasers and mental maths

These test speed and structure under pressure. You will get probability questions, quick arithmetic and estimation problems, and you should talk through your reasoning out loud, because a wrong answer with clean logic often scores better than a right answer you cannot explain.

Try these under a time limit:

• What is 15% of 240? (36)
• What is 17 times 23? (391)
• You roll a fair die and are paid the number shown. What is the expected payout?
• How many rolls of a fair die do you expect before you get a six, counting the roll that gives the six?

Ten minutes of mental maths a day for a few weeks makes a visible difference to speed.

Behavioural questions

Expect the usual set on teamwork, pressure, mistakes, leadership and persuading someone. Prepare a handful of real stories that can flex across them, and practise telling each one out loud in under two minutes.

How to prepare

• Practise out loud. Reading answers silently does not prepare you for saying them under pressure. Record yourself, or ask a friend to challenge you.
• Keep a running note of what has happened in markets over the last month, with the reason for each move.
• Learn the products properly, since every technical answer will be followed by another question.