Public Beta is out! today to get 1 month free premium 🎉
Technical interview question about Currency Hedging for Senior-Level Sales and Trading

How would you structure a hedging strategy for a client exposed to currency risk in emerging markets?

Sales and Trading

Technical

Asked at

UBS

Difficulty :

Hard

Explanation

This question evaluates your understanding of hedging techniques and your ability to manage risks associated with currency volatility. Recruiters want to see your ability to tailor risk management strategies to specific client needs. Common pitfalls include failing to consider the unique challenges of emerging markets or providing overly generic solutions. A strong answer demonstrates a detailed approach, including the use of financial instruments like forwards, options, or swaps, while aligning the strategy with the client’s risk tolerance. Preparation involves studying hedging tools and real-world applications.

Answer Example

I would start by assessing the client’s exposure, understanding their business operations, and determining their risk tolerance. Based on this, I would propose a hedging strategy using a mix of forward contracts for fixed-rate protection and currency options for flexibility. For example, I advised a client with significant exposure to the Brazilian Real, implementing a combination of forwards and options that reduced their currency risk by 30% while maintaining liquidity.

How it works?

Designed to be stress-free.

Step 1:
Upload Resume

Start with your current resume, or create one from scratch with our AI resume builder.

Step 2:
Paste Job Description

Upload the job description, and our AI will tailor your resume to match the job’s key skills and qualifications.

Step 3:
Download and Apply

Your ATS-friendly resume and application will be ready in seconds. Now apply with confidence!

That's it! Give it a go!
Get updates and career content

Subscribe to our newsletter

We frequently write blogs that help our community with their career growth! Don't miss out!

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Talk to us directly

Join us on Discord

Discord is where we give updates, offer member exclusive giveaways, and help each other grow on our careers.

Your success begins here.

Get Started Now