Prop Trading Interview Questions for Traders
The same round is marked differently depending on the seat you are interviewing for. This is the prop trading set as it applies to traders.
40 questions, all free to practise. The split is 7 easy, 32 medium, 1 hard. The topics that come up most are probability (15), finance & derivatives (10), market making & betting games (8), combinatorics (6).
- A hundred days of compoundingEasyBrainteasersFinance & DerivativesView →
- A majority of onesEasyCombinatoricsView →
- A perfect-power dice sumEasyProbabilityCombinatoricsView →
- Both sixes given at least oneEasyProbabilityConditional Probability & ExpectationView →
- Net P&L of a two-leg book from DV01EasyFinance & DerivativesView →
- Settlement on a pay-fixed FRAEasyFinance & DerivativesView →
- The costliest roulette bet on the tableEasyProbabilityExpected ValueView →
- Absorption probability on a lineMediumProbabilityStochastic ProcessesView →
- Arbitraging a mispriced forward loanMediumFinance & DerivativesView →
- Backing out a correlationMediumRandom VariablesStatisticsView →
- Backing out the informed flow from imbalanceMediumMarket Making & Betting GamesView →
- Both even given an even sumMediumProbabilityConditional Probability & ExpectationView →
- Buyer count in a thinned arrival streamMediumProbabilityStochastic ProcessesView →
- Coin-pile NimMediumBrainteasersMarket Making & Betting GamesView →
- Dice game, up to three rollsMediumExpected ValueStochastic ProcessesView →
- Expected maximum of three diceMediumRandom VariablesExpected ValueView →
- First to roll a sixMediumProbabilityView →
- Five distinct ranksMediumProbabilityCombinatoricsView →
- Forward vs. futures priceMediumFinance & DerivativesView →
- Full housesMediumProbabilityCombinatoricsView →
- Gambler's ruinMediumProbabilityStochastic ProcessesView →
- Inventory-skewed reservation priceMediumMarket Making & Betting GamesView →
- Optimal bid-ask placementMediumMarket Making & Betting GamesView →
- Painted cube, one face showingMediumProbabilityBrainteasersView →
- Position of the first spadeMediumCombinatoricsExpected ValueView →
- Pricing a coupon bond off the spot curveMediumFinance & DerivativesView →
- Reaching the target before ruinMediumStochastic ProcessesView →
- Reading order flowMediumMarket Making & Betting GamesView →
- Rehedging a book after a moveMediumFinance & DerivativesView →
- Short-straddle P&L when vol stays lowMediumFinance & DerivativesView →
- The St. Petersburg paradoxMediumExpected ValueMarket Making & Betting GamesView →
- The profitable range of a short strangleMediumFinance & DerivativesView →
- Two uniforms summing below a halfMediumProbabilityRandom VariablesView →
- Two uniforms summing past 1.5MediumProbabilityCalculusView →
- Two-sided p-value of a mean testMediumStatisticsView →
- When time decay reversesMediumFinance & DerivativesView →
- Which deck for two reds?MediumProbabilityView →
- Winner's curseMediumMarket Making & Betting GamesView →
- Within distance d on the unit intervalMediumProbabilityCalculusView →
- Defective stack of coinsHardCombinatoricsBrainteasersView →
Widen the search
This set is a slice of two larger ones. If it is too narrow, start here instead:
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