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

Applying for a Junior Trader job in the UK? Here is what you are likely to be asked. These questions come from our Junior Trader question bank of 16 questions, written for UK employers at junior level.

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

1. Pitch me a trade idea. What is your view, why, and how would you manage the risk?

Why they ask: The single most common junior trader question; it tests market awareness, structure and risk discipline.

2. What is a bid-offer spread, and what determines how wide a market maker quotes it?

Why they ask: Fundamental to understanding how trading desks earn and manage risk.

3. Explain delta, gamma and vega for an option, and how a trader would use them.

Why they ask: Options Greeks are standard fare for any trading desk interview.

4. I offer you a game: roll a fair six-sided die and I pay you in pounds the number shown. What would you pay to play, and how would your answer change if you could roll again once?

Why they ask: Probability and expected value puzzles test numeracy and decision-making under uncertainty.

5. What are the main order types and execution algorithms, and when would you choose each?

Why they ask: Execution knowledge is important for a junior who will be entering orders in a live market.

6. You are running a position that is down and has hit your stop loss level, but you strongly believe the market will reverse. What do you do?

Why they ask: Tests discipline, which is the most important trait in a junior trader.

7. Tell me about a time you made a decision with incomplete information and how you managed the risk.

Why they ask: Trading is decision-making under uncertainty; they want evidence of a sound process.

8. What does a typical day as a junior trader involve?

Why they ask: Checks realistic expectations of a junior desk role.

A sample answer to question 1

Pitch me a trade idea. What is your view, why, and how would you manage the risk?

My idea would be to be long the pound against the euro on a view that the Bank of England will cut Bank Rate more slowly than the ECB, which should widen the rate differential in sterling's favour. I would express this by buying GBP/EUR spot, or a one-month forward if I wanted the carry. My entry would be near a technical support level, with a stop loss just below it, risking around one per cent of my notional for a target about twice that, so a risk-reward of at least two to one. Key catalysts are UK inflation and wage data, and the next MPC meeting. What could go wrong: a surprise dovish MPC vote, weaker UK growth data, or risk-off flows into the euro. I would size the position so a stop-out would be a tolerable loss, review it after each major data release, and close it early if the thesis changes, instead of waiting for the stop.

Common mistake to avoid: No stop loss or risk; a view with no supporting data

Want the rest?

Full model answers, key points and common mistakes for all 16 questions are on the Junior Trader interview questions page. The first five are free, no sign-up needed.