4 questions reported in Flow Traders interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Market impact, liquidity provision, borrow and event flow. 2 questions
Central to any market-making interview at a prop firm or bank.
You're making a market in a stock. What determines the width of your bid-ask spread? A large institutional client asks for a two-way price in size. How does that change your quote?
Asked at market makers and any desk touching ETF flow.
How does an ETF stay close to its net asset value? What happens when it doesn't?
Multiple testing, out-of-sample discipline, capacity and decay. 1 question
The signature exercise at proprietary trading firms.
Make me a market on the sum of the digits of a randomly chosen phone number in the room. Then I'll trade against you. Explain how you'd think through the whole exercise.
Expected value under pressure, adverse selection and inventory risk. 1 question
The core mechanic of market making, tested with a live scenario.
You're making a market at 99 / 101 in a contract. You get hit on the bid three times in a row and are now long 300 lots. What do you do with your quote?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Flow Traders.