FX Trader Interview Questions UK: 8 Real Questions and What Interviewers Want

Applying for a FX Trader job in the UK? Here is what you are likely to be asked. These questions come from our FX Trader question bank of 12 questions, written for UK employers at mid-level level.

Eight FX Trader interview questions, and what the interviewer is thinking

1. What does a typical day as an FX trader involve, and why FX rather than another asset class?

Why they ask: To check you understand desk life and are motivated by the specific features of the FX market.

2. How are FX forward prices determined, and what does covered interest rate parity say?

Why they ask: To test a fundamental concept used daily in pricing swaps and forwards.

3. What is the FX Global Code, and how does it shape practices such as last look and handling client information?

Why they ask: To assess knowledge of conduct standards, a major focus after the FX benchmark scandals.

4. How would you trade or hedge around a major central bank decision using FX options?

Why they ask: To test options knowledge applied to a real-world market event.

5. How do you price and risk-manage a flow book as a market maker, including skewing and managing inventory?

Why they ask: To test understanding of market-making mechanics, not just directional trading.

6. What is settlement risk in FX, how does CLS reduce it, and why are NDFs treated differently?

Why they ask: To test knowledge of post-trade mechanics and risk, which a good trader should understand.

7. A large client asks you to execute a big sterling order, and you suspect that if the market sees it the price will move against them. How do you handle it?

Why they ask: To test client-first judgement, information handling and execution skill.

8. Tell me about a time you identified a pricing dislocation or opportunity in the market and acted on it.

Why they ask: To see whether you can spot value and act with a risk-aware process.

A sample answer to question 1

What does a typical day as an FX trader involve, and why FX rather than another asset class?

I would start with the overnight session summary, the day's economic calendar and my positions and risk. During the day, depending on the desk, I either make prices to clients and manage the resulting flow, or run a proprietary or relative value book within limits. I react to data releases, central bank communications and large client orders, hedge exposures, and talk to sales, e-trading and risk. At the end of the day I reconcile P&L, check positions and prepare for the next session. I like FX because it is the deepest, most liquid, truly global market, driven by macro, rates and flows, and it trades nearly twenty-four hours. That gives immediate feedback on whether your reading of the world is right, and requires discipline in risk and an understanding of both macroeconomics and market microstructure.

Common mistake to avoid: Citing only glamour or money; knowing little about how FX actually trades

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the FX Trader interview questions page. The first five are free, no sign-up needed.