Technical Interview at Flow Traders
After a math test and an HR interview I have a technical interview at Flow Traders (Amsterdam) in the following weeks. It would be lead by both a trader and an HR recruiter. Does anyone passed it already and could tell me what to excpect regarding that.
Thanks in advance
How long does it take since you pass the Math test to get the invitation to the HR interview? Did the Math test today and I am 100% sure I passed it and the recruiter said she was going to contact us after the exam but I have not received any email yet.
Disregard my last message, just received the invitation now
I got dinged in my technical, and I interviewed for the NYC position. But regardless, my interview consisted mainly of questions that revolved around ETF's and market-making. Also, a lot of weird "situation" type questions.....if aliens were to invade Earth, what asset would you buy? Would you buy Flow Traders stock? Know about leveraged ETF's, the danger of leveraged decay (caused by compounding daily returns and leveraged ETF daily resets), and the pros and cons. Understand the concept of a stock increasing by X% one day, decreasing by X% the next day, and the overall return of the stock is not neutral, but rather negative. Example: $100/share stock --> 10% increase --> $110 ---> 10% decrease --> $99/share (1% overall decrease aka never invest in leveraged ETF's for the long-term). In fact, in the long-run the expected value of a leveraged ETF like TQQQ is $0/share. For more information --> https://www.etf.com/etf-education-center/etf-basics/leveraged-and-inver…
Zero mental math, probability, stats, brain teaser questions. Literally all financial markets - related questions. Make sure to prepare a stock pitch beforehand, because I was asked to describe a stock on the spot. And no, you can't pick AAPL or TSLA or something basic like that. Speaking of APPL and TSLA, they may ask you to name a recent stock that has undergone a stock split. AAPL and TSLA are the ones you want to name lmao. AAPL was 5-for-1 and TSLA was 4-for-1. Know what that entails (5-for-1 means every 1 share an investor owns gets multiples by 5, so share price decreases by a factor of 5, thereby keeping market capitalization unchanged). Be prepared to talk about your personal trading experience or lack thereof. Understand the various stock exchanges, the most-traded ETF's, largest ETF issuers, how creation and redemption works, and the intricacies of a stock-split (ex-dividend date), and how shares and market capitalization are affected. Most importantly, understand how Flow Traders benefits from increased volatility --> increased trading volume. When there is increased volatility, do Flow Trader market makers widen their spread, or narrow it? Be confident in your interview, and there is no bullshitting because you will be talking to a trader who knows his stuff like the back of his hand.
By the way, I was able to answer nearly all of this and still did not move on. Prepare rigorously, because they are really looking for perfection when deciding whether to move you on to the final round. GL
Thanks bro that's really helpful.
The lack of brainteasers/mental math is quite strange though knowing that they pretend to give the opportunity to candidates with no financial background.
Yeah, which is why I was a bit disappointed with the process. I studied so hard for mental math/brainteasers/EV type questions, and it was legitimately all finance-based questions. As a math major, I had to self-study all of this in a couple months so my foundation was a bit shaky, combined with the pressure of talking to a trader
I did the interview recently for Amsterdam. Standard motivational questions to begin with a focus on your particular experiences and how they have shaped you for trading. This was followed by two brainteasers - quite difficult but certainly doable if you don't panic. Finally, an ETF brainteaser which is simple mental math and tests whether you can spot the opportunity and take it. I managed to get two out of the three brainteasers on the first try and passed the interview. Good luck!
Thank you very much, it really helps me lot. Good luck for your last round !
Could you provide us with an example of the brain teasers you were asked to solve or somewhere where we can practice? Thanks in advance!
Heard on the Street by Timothy Falcon was sufficient for me
Saw someone say the case-study brainteaser thing is dynamic hedging using multiple ETFs? Product A has a multiple of 1.5 the underlying product B has a multiple of 2 the underlying. I'm long 40k product A how would I hedge the ETF? Ans. Short 30k B. Is it similar to that?
I wrote a guide on how to ace the Flow Traders interview. Find the link in my profile.
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