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Sales and Trading Interview Questions and Answers
Sales & Trading Career
December 9, 2025
Sales & Trading (S&T) sits at the heart of the global financial markets. While investment banking focuses on raising capital and advising companies, Sales & Trading is the side of the business that interacts directly with markets, executing trades, taking risk, distributing securities, and helping investors navigate constantly moving prices. For anyone interested in markets, macroeconomics, or fast-paced decision-making, S&T offers an intellectually demanding, and dynamic career paths on Wall Street. Learn how Sales & Trading works, the key roles, and the responsibilities across sales, trading, structuring, research, and quant or strats. You’ll also learn how desks are organized, how asset classes differ, and how front office roles interact within a firm.
What Sales & Trading Actually Is
Sales & Trading is the part of an investment bank that brings the financial markets to life each day. Its purpose is simple:
- Help institutional investors trade efficiently, whether they want to buy, sell, hedge, or take a position.
- Use the firm’s capital to take and manage risk, allowing the bank to make markets and keep liquidity flowing.
Unlike investment bankers, who work privately on long term deals, Sales & Trading operates entirely on the public side. Everything happens in real time. The information is public, the prices move by the second, and the conversations with investors are constant. Asset managers, hedge funds, pension funds, insurers, and corporates rely on this division to interpret the market and execute decisions quickly.
Sales & Trading teams sit within what most firms call the Markets or Securities division, and the trading floor is where it all comes together, salespeople speaking with clients, traders pricing risk, and the market itself shaping every decision.
How S&T Roles Are Structured: Product + Function
In Sales & Trading, every analyst eventually lands on a “desk,” and your job on that desk is defined by two things: the product you work with and the function you perform.
The product is the type of financial market you focus on. That could be equities (stocks), FX (currencies), credit (corporate bonds), mortgages, commodities like oil or gold, or interest rates. Over time, this becomes the market you specialize in.
The function is the role you play within that market. You might be in sales, talking to clients; in trading, managing risk and pricing; in structuring, building customized products; in research, analyzing companies or markets; or in a quantitative role, building models and tools.
Each desk has its own personality. FX is fast and moves in seconds. Structured credit is slower and more analytical, with trades that can take days or weeks. As you spend time on your desk, you start to learn the rhythm of your product, how it moves, what drives it, and how people in that market think.
| Role | Product (What Market You Cover) | Function (What You Do) | What the Job Actually Means |
| Credit Sales | Corporate Bonds, Loans | Sales | Talk to clients about credit markets, share insights, and help them buy or sell corporate bonds. |
| Credit Trading | Corporate Bonds, Loans, Credit Derivatives | Trading | Price and trade credit products, manage risk, and react to credit events (earnings, downgrades, news). |
| Rates Sales | Government Bonds, Interest Rate Swaps | Sales | Work with clients who trade interest rate products; explain rate movements and help with execution. |
| Rates Trading | Government Bonds, Swaps, Futures | Trading | Price and trade interest-rate products, manage risk, and respond to macroeconomic and central bank data. |
| FX Sales | Currencies (Foreign Exchange) | Sales | Help clients trade currencies, provide market color, and support hedging or global payment needs. |
| FX Trading | Spot FX, Forwards, FX Options | Trading | Trade currency pairs and manage exposure to macro data, interest-rate differentials, and geopolitics. |
| FX Structuring | Currency Derivatives | Structuring | Build tailored currency hedging or yield-enhancement solutions using derivatives. |
| Equity Sales (Research Sales) | Stocks & Equity Products | Sales | Work with portfolio managers, share research, provide corporate access, and pitch equity ideas. |
| Equity Sales Trader (Execution) | Stocks | Execution / Sales Trading | Help asset managers execute large stock trades, source liquidity, and navigate exchange mechanics; does not take principal risk. |
| Equity Derivatives Sales | Options & Equity Derivatives | Sales | Cover clients trading options and volatility products; pitch structured ideas or hedging strategies. |
| Equity Derivatives Trading | Options, Volatility Products | Trading | Price and manage risk in equity options, volatility, and structured equity derivatives. |
| Equity Structuring | Structured Equity & Notes | Structuring | Design equity-linked products for customized exposure, yield, or hedging needs. |
| Commodities Sales | Energy, Metals, Agriculture | Sales | Work with corporates or hedge funds trading oil, gas, metals, or agricultural products; explain drivers and market trends. |
| Commodities Trading | Oil, Gas, Power, Metals, Commodity Derivatives | Trading | Trade commodity derivatives (and sometimes physical products), manage supply/demand risk, and react to geopolitical events. |
| Mortgage / Securitized Sales | Mortgage-Backed & Asset-Backed Securities | Sales | Sell securitized products to institutional investors; explain spreads, risks, and prepayment dynamics. |
| Mortgage / Securitized Trading | MBS, ABS, CMBS | Trading | Price and trade securitized products; manage risk tied to housing markets, refinancing, and interest-rate changes. |
| Research Analyst | Any Asset Class | Research | Build models, publish reports, and provide insights for both clients and internal trading desks. |
| Quant / Strat | Any Asset Class | Quantitative Analysis | Build pricing models, risk systems, analytics tools, and support electronic/algorithmic trading. |
How Sales & Trading Desks Are Organized
When you step onto a trading floor for the first time, it can feel overwhelming, a huge room filled with screens, noise, and constant movement. But underneath the energy, the floor is organized in a very structured and logical way. Every large bank divides its Sales & Trading division by asset class. Each asset class has its own set of desks, each with a unique rhythm and personality.
At the highest level, the floor is split into two main worlds: equities and FICC
Equities
The equities side focuses on anything related to stocks and equity markets. Even within equities there are specialized desks:
- Cash Equities – This is the trading of actual shares of stock. It’s the purest form of equity trading.
- Equity Derivatives – These desks work with options, volatility products, exotic structures, and complex equity-linked instruments.
- Delta one – A space that trades products designed to track an underlying index or stock very closely, such as ETFs, equity swaps, or index futures.
- Equity Swaps – Used by hedge funds for leverage or to gain exposure without directly owning the shares.
Each desk plays a different role in the equity ecosystem, but together they support everything from basic stock trades to complex volatility strategies.
FICC: Fixed Income, Currencies & Commodities
The other side of the floor is FICC, a broader universe covering interest rates, bonds, currencies, mortgages, and commodities. It’s often larger and more varied than equities.
Rates
This includes government bonds, interest rate swaps, futures, and options. Rates desks are strongly connected to macroeconomic data, inflation, and central bank policy.
Credit
These desks trade corporate bonds, high yield debt, leveraged loans, distressed debt, and credit derivatives. They focus on company fundamentals and creditworthiness.
Securitized Products
This world deals with products backed by mortgages or other assets, MBS, CMBS, ABS. It blends bond math with consumer and real estate trends.
Foreign Exchange (FX)
FX desks trade global currencies through spot, forwards, and options. These markets move quickly and react instantly to global news.
Commodities
Energy, metals, power, and agriculture all fall here. Some desks trade derivatives; others may manage exposure to physical commodities depending on the bank.
Why Banks Organize Desks This Way
This structure reflects how global markets operate. Each asset class has different:
- Pricing drivers
- Clients
- Risk profiles
- Trading styles
- Regulations
By grouping desks this way, banks create deep expertise within each product area and allow salespeople, traders, and structurers to specialize.
Front Office, Middle Office & Back Office in Sales & Trading
Now that we’ve seen how desks are structured by asset class, let’s examine how different office functions support the trading process from start to finish. Even though Sales & Trading is known as a front office business, the entire trading process depends on support from the middle office and back office. Every trade from the moment a client asks for a price to the moment money moves passes through all three.
Front Office: Where Markets and Clients Meet
The front office is the revenue, generating side of Sales & Trading. These are the people who speak directly with clients, take risks, design products, and make decisions in real time. Below are the main front office roles, explained clearly with the skills needed for each.
Sales: The Client Relationship Engine
What the Role Is
Salespeople are the main point of contact for institutional investors. They learn what clients want to do whether it is to buy bonds, hedge currency risk, trade equities, or explore new ideas, and connect them with the right traders and research analysts. A salesperson’s day revolves around sharing market color, pitching ideas, and guiding trades from start to finish
Skills Needed
- Strong communication and people skills
- Ability to simplify complex market ideas
- Quick market awareness and intuition
- Building relationships and client empathy
- High attention to detail
Sales connects the client to the market.
Trading: Pricing, Risk & Market
What the Role Is
Traders set prices, take risks, and manage the firm’s exposure. They watch markets move second by second and make decisions quickly. Each product has its own rhythm, FX moves in seconds, credit responds to earnings and ratings, and derivatives revolve around volatility.
Skills Needed
- Numerical and analytical strength
- Fast, confident decision-making
- Ability to handle pressure
- Strong risk discipline
- Comfort with uncertainty and rapid change
Traders move the market and manage risk in real time.
Structuring: Custom Solutions for Complex Problems
What the Role Is
Structurers design customized financial solutions for clients whose needs go beyond a simple buy or sell order. This could include hedging large risks, creating yield notes, or building cross-asset strategies. Structurers turn client goals into engineered financial products and work closely with traders to understand the risks involved.
Skills Needed
- Strong quantitative and financial modeling ability
- Creativity in designing financial solutions
- Ability to explain complex concepts simply
- Understanding of derivatives and risk transfer
- Collaboration across sales and trading
Structuring blends math, creativity, and client needs into custom products.
Research: Insights That Drive Market Decisions
What the Role Is
Research analysts study companies, industries, economies, and credit markets. They publish reports, forecasts, and trade ideas that inform clients and help traders understand what is driving the market. Their work shapes conversations on the trading floor.
Skills Needed
- Deep analytical and modeling skills
- Strong writing and communication
- Ability to synthesize large amounts of data
- Curiosity and a research driven mindset
- Specialized knowledge in a sector or asset class
Research turns information into insight.
Quants & Strats: The Technology and Model Builders
What the Role Is
Quants and strats create the pricing models, analytical tools, and algorithmic trading systems that modern markets rely on. They write code, build risk engines, fine- tune models, and help automate parts of trading. Their work lies at the intersection of programming, math, and finance.
Skills Needed
- Programming (Python, C++, Java, SQL)
- Mathematics, statistics, and data science
- Ability to translate trader needs into tools
- Strong problem-solving skills
- Understanding of financial products
Quants and strats power the market’s technology and analytics.
Middle Office: The Risk & Control Hub
The middle office ensures trades are recorded correctly, and that risk is measured accurately. They sit close to traders but do not take market risks themselves.
They focus on:
- Trade support and booking
- Daily P&L calculation for each desk
- Risk reporting and limit monitoring
- Controls, compliance, and oversight
Middle office keeps the trading floor safe, accurate, and controlled.
Back Office: The Settlement & Operations Backbone
The back office makes sure every trade is completed after it is executed. They handle the operational side of the markets, the movement of money, and securities.
They manage:
- Trade settlements
- Confirmations with clients
- Clearing and reconciliation
- Collateral and margin movements
Back office ensures trades legally and accurately settle.
This guide provides a clear foundation, but truly understanding S&T comes from exposure to desks, conversations with professionals, and hands-on experience in live markets.
What Makes S&T Unique as a Career Path
- Fast Feedback Loop: You see results immediately as markets move and positions change value.
- Meritocratic Environment: Performance is measurable, and strong contributors advance quickly.
- Economic & Macro Exposure: You gain a deep understanding of how financial systems and global markets operate.
- Client Interaction: Even junior employees interact early with hedge funds, asset managers, and corporates.
- Dynamic Work: No two days look the same; news, earnings, and macro events constantly reshape the job.
Is Sales & Trading the Right Career for You?
You may enjoy S&T if you:
- Thrive in fast paced environments
- Enjoy markets, economics, or math
- Make decisions with incomplete information
- Like solving problems under pressure
- Want to take on responsibility early in your career
- Are energized by client interaction or market risk
Across sales, trading, structuring, research, and quantitative roles, you can build a career path that matches your strengths, analytical, technical, or interpersonal.
Conclusion
If you thrive on fast-paced challenges, love markets, and want early responsibility, Sales & Trading offers unmatched opportunities to learn, grow, and make an impact from day one.