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Trader Interview Questions

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If you could play a game just once with two choices: take $1 or have a 1/10 chance of getting $10, what would you choose? How about $1 vs 1/10 chance of $15? How about $10000 vs 1/10 chance of $100k?

3 Answers

think about what a day trader/scalper does all day in order to stay consistently profitable?

It's about the expected value of probability outcomes. There are two ways of answering this: if you do this operation once, you'd better take the cash being offered; if you're repeating the operation over and over, you'd better go with the probability option. 1. $1 = 1/10 * $10 --> indifferent, go with the cash 2. $1 go with the chance 3. $10,000 = 1/10 * $100,000 --> indifferent, go with the cash

i disagree with D:, it's more about risk-aversion. Basically, when the averages are the same one has to go for smaller \sigma. Indeed 1 and 3 are answered correctly be D:. 2 depends on your personal risk-aversion preferences, because the game is played only ONCE. I would still go for 1 dollar based on my personal preferences. Of course, if one repeats the game many times, then just go for better averages as D:. However, there is a psychological way to explain a choice of 100k$ with prob 1/10. Suppose you really really want to buy a ferrari right now to impress a future girlfriend. 10k$ wouldn't make a difference, but 100$k would do a job and change you life. So you don't care if you have 10k$ more or less but you care about 100k$ . This is one of the reasons why we had so much trouble in finance in the last years.

What's your plan?

2 Answers

How many levels can you build with 52 cards? (a deck of card) EV of throwing a dice, EV of the sum of two dices after you throw 1 time, 400 times. How would you make a market based on that?

1 Answer

What do you know about bitcoin and cryptocurrency?

1 Answer

Be ready to answer questions about the market, levels, economics and stuff that is current. Could be some math testing, as well, so be quick.

1 Answer

Do I like to help businesses while making good money.

1 Answer

1.5 chicken for 1.5 eggs need 1.5. How about 9 chickens in 9days

1 Answer

if I offered you two choices: one dollar or a game where you had to guess a number from one to 10 and if you guess correctly you would receive $10. which one would you select

1 Answer

What are some interesting developments you have seen in global fixed income? Do they follow the principles you have learned in the classroom, if not, how do real world events transpiring currently differ?

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