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447 quantitative trading interview questions shared by candidates

Home assignment: OANDA operates a trading platform which allows clients to buy and sell currency pairs. When a client makes a trade to buy or a sell a currency pair, the company must decide to either (a) offset the exposure immediately by hedging the trade with a bank, or (b) hold the exposure for a period of time allowing the market to move before hedging the trade. If the company hedges the trade immediately, they will realize a small profit for each trade. If they hold the exposure, then they may realize a large profit or loss, depending if the market moves with or against the exposure. You are tasked with determining (for each client trade) whether we should hedge the trade immediately or should hold on to the exposure for a period of time. Describe how you would perform this analysis, including what data, tools, or processes you would use. State your assumptions. Comment from HR: The trading team is not looking for an exact solution, more to see your understanding of the problem, and for a proposal about how one would go about finding a solution to the problem. No formulas are required.
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Quantitative Trading Analyst

Interviewed at OANDA

3.5★
Jul 5, 2017

Home assignment: OANDA operates a trading platform which allows clients to buy and sell currency pairs. When a client makes a trade to buy or a sell a currency pair, the company must decide to either (a) offset the exposure immediately by hedging the trade with a bank, or (b) hold the exposure for a period of time allowing the market to move before hedging the trade. If the company hedges the trade immediately, they will realize a small profit for each trade. If they hold the exposure, then they may realize a large profit or loss, depending if the market moves with or against the exposure. You are tasked with determining (for each client trade) whether we should hedge the trade immediately or should hold on to the exposure for a period of time. Describe how you would perform this analysis, including what data, tools, or processes you would use. State your assumptions. Comment from HR: The trading team is not looking for an exact solution, more to see your understanding of the problem, and for a proposal about how one would go about finding a solution to the problem. No formulas are required.

There is a fair dice. After the first roll, you can decide whether to take the number or roll it again. However, you have to take the value from the second roll. If I charge you $4 to play this game and pay you whatever the dice shows, will you play this game?
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Sales, Trading & Quantitative Analysis Intern

Interviewed at Citi

3.6★
Nov 9, 2014

There is a fair dice. After the first roll, you can decide whether to take the number or roll it again. However, you have to take the value from the second roll. If I charge you $4 to play this game and pay you whatever the dice shows, will you play this game?

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