Futures First info Services Market Analyst Interview Questions and Answers

Question 1

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Q1. how would a bond price be affected if factor/s such as interest rate is played with.

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Bond prices are inversely related to interest rates - when interest rates rise, bond prices fall, and vice versa.

When interest rates rise, newly issued bonds offer higher yields, making existing bonds with lower yields less attractive, causing their prices to decrease.
Conversely, when interest rates fall, newly issued bonds offer lower yields, making existing bonds with higher yields more valuable, causing their prices to increase.
The relationship between bond prices and inte...read more

Question 2

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To find the remainder when dividing a big number by another number, use the modulo operator.

Use the modulo operator (%) to find the remainder when dividing a big number by another number.
For example, if you divide 100 by 7, the remainder would be 2 (100 % 7 = 2).

Question 3

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Yes, I have experience trading derivatives in the market.

I have traded options and futures contracts to hedge against market risks.
I have used derivatives to speculate on price movements and generate profits.
I am familiar with the concept of leverage and margin requirements in derivative trading.

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Market analysis involves studying market trends, consumer behavior, and competitor activity to make informed business decisions.

Market analysis helps businesses understand consumer needs and preferences
It involves studying market trends, competitor activity, and economic indicators
Market analysts use data and research to make recommendations for business strategies
Examples include conducting surveys, analyzing sales data, and monitoring industry news

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Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

Derivatives can be used for hedging, speculation, or arbitrage.
Common types of derivatives include options, futures, forwards, and swaps.
They allow investors to take positions on the price movements of assets without owning the assets themselves.
Derivatives are traded on exchanges or over-the-counter markets.
Example: A call option on a stock gives the holder the right to b...read more

Question 6

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Arbitrage is the practice of buying and selling assets simultaneously in different markets to take advantage of price differences.

Arbitrage involves exploiting price discrepancies to make a profit.
It typically involves buying an asset in one market at a lower price and selling it in another market at a higher price.
Arbitrage opportunities are often short-lived due to market efficiency.
Examples include currency arbitrage, where traders exploit differences in exchange rates, an...read more