Interview with Commodity Trading Firm -preparation?

[goldski]

So I have an interview with a commodity and option trading firm in Chicago. The firm is an open outcry and electronic trading firm. There are no general outlines on the job description, and it will be a "little bit of this and a little bit of that" . There will be quant stuff, and trader assistant helper type also. They use a lot of quant algorithms too so there might be a bit of work related to that too. Nothing definite. The firm has been around for 30 years.

Interview is in 4 days.

I was just wondering, what type of topics should I focus on for preparation. I have a mech eng degree, and that's about it.

I was thinking on focusing on possibly futures/forward contracts, option trading strategies (The basic ones) , learn about open-outcry, etc etc. I was also thinking of reading a bit about oil futures trading. I have gone through those topics before, but just thought I would refresh it a bit.

I have Hull's book so I am just thinking of going through a few things through there.

Anything else I should focus on, or any suggestions ?

 

[Uncle Max]

Read about commodities futures. What kind of contracts exist, what are settlement/deliver dates for a certain contract, which exchanges trade which contracts etc.

As to options you must know Greeks and how they are used for trading. Plus Black Scholes, its assumptions and limitations, volatility smile. As you said, a little bit of everything.

Good luck!

 

[goldski]

Thanks appreciate it.

 

[goldski]

The firm is apparently a market maker. I might be working in the pit too along with quant stuff.

Should I study anything specific to either of those or just understand what "market making" is, and learn some hand signs for the interview?

 

[alain]

I don't know exactly the position you are interviewing for but knowing the hand signs won't make or break the deal.

Also, something sounds out of place when you say "working the pit too along with quant stuff".

 

[Ken Abbott]

commodities interview prep

The following is everything you need to know about nat gas, tied up with a bow in a neat little package. Read the first 75 pages or so.

http://hsgac.senate.gov/public/_files/REPORTExcessiveSpeculationintheNaturalGasMarket.pdf

For oil liquids, get ahold of "Petroleum Refining for the Nontechnical Person" for the basic product descriptions. Also see:

Oil Market Basics

 

[goldski]

I don't know exactly the position you are interviewing for but knowing the hand signs won't make or break the deal.

Also, something sounds out of place when you say "working the pit too along with quant stuff".

They will have me rotate through various jobs during the 3 month internship. I will be doing some model valuation, risk modelling, helping their traders in the pit, extracting data and cleaning it up, mowing the partners lawns, etc.

---------- Post added at 10:01 AM ---------- Previous post was at 10:00 AM ----------

The following is everything you need to know about nat gas, tied up with a bow in a neat little package. Read the first 75 pages or so.

http://hsgac.senate.gov/public/_files/REPORTExcessiveSpeculationintheNaturalGasMarket.pdf

For oil liquids, get ahold of "Petroleum Refining for the Nontechnical Person" for the basic product descriptions. Also see:

Oil Market Basics

I have read both those posts actually. The first one, just a bit, but I will read it more extensively.

Thanks.