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DERIVSOURCE: How Firms Can Assess Derivatives Competence Before it Becomes a Risk Problem
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Traders Magazine
What employers need to establish is rarely whether a candidate has encountered derivatives, since at this level almost everyone has.
Technical interviews often test fragmentsMost firms run a technical assessment of some kind, though the design matters more than its presence.
What the firms I work with want to hear is that a candidate thinks about the book rather than the trade.
Neither addresses what a hiring manager is actually trying to establish, which is whether a specific person has comprehensive competence across futures, options and applied derivatives risk.
Gaps in the understanding of leverage, volatility, liquidity or portfolio risk are far harder to correct once responsibility has been assigned.