60+ Equity Dealer Interview Questions and Answers

To generate 15000k brokerage from clients with .50 brokerage, we need to have a total trading volume of 3 billion.

• Brokerage = Total Trading Volume * Brokerage Rate

• 15000k = Total Trading Volume * 0.50

• Total Trading Volume = 15000k / 0.50

• Total Trading Volume = 3 billion

In the money, At the money and out of the money call and put option explained with examples.

• In the money call option: Strike price is lower than the current market price. Example: Stock ABC is trading at $50, call option with a strike price of $40 is in the money.

• Out of the money call option: Strike price is higher than the current market price. Example: Stock ABC is trading at $50, call option with a strike price of $60 is out of the money.

• At the money call option: Strike pr...read more

I suggest investing in XYZ stock due to its strong financials and growth potential.

• XYZ has consistently shown strong financial performance in the past few quarters

• The company has a solid growth strategy in place and is expanding into new markets

• Industry experts predict a positive outlook for the sector in which XYZ operates

• XYZ has a competitive advantage over its peers due to its unique product offerings

• The stock is currently undervalued and has the potential for significant ...read more

Markets refer to the buying and selling of goods and services, stocks, bonds, and other financial instruments.

• Markets can be classified into different types such as stock markets, commodity markets, currency markets, etc.

• The prices of goods and services in a market are determined by the forces of supply and demand.

• Investors use various tools and techniques to analyze market trends and make informed investment decisions.

• Market volatility and economic indicators such as GDP, in...read more

Yes, I am flexible to do commodity segment dealing and equity dealing.

• I have experience in both commodity and equity dealing

• I am willing to learn and adapt to new market trends

• I understand the differences between the two segments and can handle them accordingly

It is not possible to accurately predict the performance of specific stocks in the next 5 days due to market volatility and various external factors.

• Stock market performance is influenced by a wide range of factors including economic indicators, company news, geopolitical events, and investor sentiment.

• Short-term stock predictions are highly speculative and can be influenced by unpredictable events.

• It is recommended to focus on long-term investment strategies and diversificat...read more

I would diversify my portfolio and keep a close eye on market trends and news.

• Diversify portfolio to minimize risk

• Stay updated on market trends and news

• Use stop-loss orders to limit losses

• Avoid emotional trading decisions

• Consider short selling or hedging strategies

• Maintain a long-term perspective

• Consult with experienced traders or financial advisors

Yes, I have a good understanding of trading stocks.

• I have studied the stock market and its trends

• I keep myself updated with the latest news and events that can affect the stock market

• I have experience in analyzing financial statements and making informed decisions

• I have also practiced trading stocks in a simulated environment

• For example, I have successfully traded stocks of companies like Apple, Amazon, and Microsoft

Lot size varies for different equity and commodity futures contracts.

• Lot size refers to the minimum quantity of shares or units that can be traded in a single transaction.

• For example, the lot size for Nifty 50 futures is 75, while for Bank Nifty futures it is 20.

• Similarly, the lot size for gold futures is 1 kg, while for crude oil futures it is 100 barrels.

• Lot size can also vary based on the exchange and the contract expiry date.

Technical charts used for predicting market movement include candlestick charts, moving averages, and relative strength index (RSI).

• Candlestick charts show the open, high, low, and close prices for a given time period

• Moving averages smooth out price fluctuations and show the trend direction

• RSI measures the strength of a security's price action

• Other technical charts include Bollinger Bands, MACD, and Fibonacci retracements

Yes, I can open 3 accounts monthly.

• Yes, I have the capacity to open 3 accounts monthly.

• I have experience in opening multiple accounts in a month.

• I can manage the workload efficiently to open 3 accounts monthly.

• For example, in my previous job, I used to open 5 accounts monthly on average.

Financial services refer to services provided by financial institutions to help manage money and investments. A financial swap is a financial contract between two parties to exchange cash flows based on a predetermined set of rules. An index is a statistical measure of the performance of a group of stocks or other securities.

• Financial services include banking, investment management, insurance, and other related services

• A financial swap is a type of derivative contract that al...read more

Equity and commodity segments have different timings for trading.

• Equity segment trading timing is from 9:15 am to 3:30 pm on weekdays.

• Commodity segment trading timing varies for different commodities.

• For example, gold and silver trading timing is from 9:00 am to 11:30 pm on weekdays.

• Crude oil trading timing is from 10:00 am to 11:30 pm on weekdays.

• Timing may also vary based on exchange and market regulations.

Revenue is generated through brokerage fees and commissions on trades executed for clients.

• Brokerage fees charged on every trade executed for clients

• Commissions earned on the volume of trades executed

• Additional revenue generated through value-added services like research and advisory

• Revenue can also be generated through cross-selling of other financial products

• Building a strong client base through networking and referrals

A derivatives contract is a financial agreement between two parties based on an underlying asset.

• Derivatives contracts derive their value from an underlying asset such as stocks, bonds, commodities, or currencies.

• They are used for speculation, hedging, or arbitrage purposes.

• Common types of derivatives contracts include futures, options, swaps, and forwards.

• These contracts allow investors to take positions on the price movements of the underlying asset without owning it.

• For ex...read more

Cross selling is an important aspect of equity dealing where a dealer offers additional products or services to existing clients.

• Cross selling helps in increasing revenue and building customer loyalty.

• It involves identifying the needs of the client and offering relevant products or services.

• For example, a dealer can offer mutual funds or insurance policies to clients who have invested in stocks.

• Effective cross selling requires good communication and relationship building skil...read more

I will recommend a good stock to my client by conducting thorough research, analyzing market trends, and considering the client's investment goals and risk tolerance.

• Conduct thorough research on the company's financial health, performance, and future prospects

• Analyze market trends and economic indicators to identify potential opportunities

• Consider the client's investment goals, risk tolerance, and time horizon before making a recommendation

• Provide regular updates and recommen...read more

Call option and put option are types of financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period.

• Call option gives the buyer the right to buy an underlying asset at a predetermined price within a specified time period.

• Put option gives the buyer the right to sell an underlying asset at a predetermined price within a specified time period.

• Both call and put options have a...read more

I am open to discussing the compensation package further based on my qualifications and experience.

• I am open to negotiating the compensation package based on my skills and experience.

• I would like to understand the complete benefits package before making a decision.

• I am willing to consider the fixed package but would like to discuss potential for performance-based incentives.

Shares market is a platform where stocks of publicly traded companies are bought and sold.

• Shares represent ownership in a company

• Shares can be bought and sold on stock exchanges

• Prices of shares fluctuate based on supply and demand

• Investors can make profits by buying low and selling high

• Examples of stock exchanges include NYSE, NASDAQ, and BSE

I can place client's orders punching quickly and accurately to ensure timely execution.

• I am proficient in using trading platforms to quickly enter orders.

• I have a strong attention to detail to avoid errors in order entry.

• I prioritize speed and accuracy to meet client's needs efficiently.

Yes, I have completed the NISM series certification.

• I have completed the NISM series certification which includes various modules related to equity trading and investment.

• This certification is recognized by SEBI and is mandatory for individuals working in the securities market.

• It demonstrates my knowledge and understanding of the equity market and my ability to provide quality services to clients.

• I have also kept myself updated with the latest market trends and regulations th...read more

I feel cautiously optimistic about the current market.

• I believe the market is showing signs of stability and growth.

• There are several positive indicators such as increasing stock prices and low volatility.

• However, I am also aware of potential risks and uncertainties that could impact the market.

• I closely monitor economic and political developments to make informed investment decisions.

• For example, the recent trade tensions between countries have the potential to affect market...read more

I used to generate an average of $X in brokerage per day

• On average, I used to generate $X in brokerage per day

• The amount of brokerage generated per day varied based on market conditions and client activity

• For example, on a busy trading day, I could generate $Y in brokerage, while on a slow day it could be lower at $Z

Futures derivatives are financial contracts that obligate the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.

• Futures contracts are standardized and traded on exchanges.

• They are used for hedging or speculation.

• Examples include stock futures, commodity futures, and currency futures.

• Futures contracts have margin requirements and daily settlement.

• They have expiration dates and can be rolled over or settled.

• Futures prices are inf...read more

Bull put spread option is a bullish strategy where a trader sells put options at a lower strike price and buys put options at a higher strike price.

• Involves selling put options at a lower strike price and buying put options at a higher strike price

• Used when a trader expects the price of the underlying asset to rise

• Limited profit potential and limited risk

• Example: Sell put option at $50 and buy put option at $45 for a stock trading at $55

• If the stock price rises, the trader ke...read more

The support level for Reliance Industries is around Rs. 2,000 while the resistance level is around Rs. 2,300.

• Support level: Rs. 2,000

• Resistance level: Rs. 2,300

Capital market is a financial market where long-term securities are traded.

• It includes stock market and bond market

• Companies raise capital by issuing stocks and bonds

• Investors buy and sell securities to earn profits

• Regulated by SEBI in India

• Examples include BSE, NSE, NYSE, NASDAQ

Yes, I have the required NISM Certificate.

• Yes, I have completed the NISM Series VIII - Equity Derivatives Certification Examination.

• I have also obtained the NISM Series VII - Securities Operations and Risk Management Certification.

• Having these certifications demonstrates my knowledge and expertise in equity trading.

Equity advisory focuses on equity investments, investment advisory covers a broader range of investments, and financial advisory includes overall financial planning.

• Equity advisory specifically focuses on advising clients on equity investments in stocks and shares

• Investment advisory covers a broader range of investments including equities, bonds, mutual funds, etc.

• Financial advisory includes overall financial planning, retirement planning, tax planning, estate planning, etc.

Yes, I am familiar with the stock market.

• I have been following the stock market for a few years now.

• I have experience in buying and selling stocks.

• I keep myself updated with the latest news and trends in the stock market.

• I have a good understanding of technical and fundamental analysis.

• I have also taken courses and read books on the stock market.

• For example, I have invested in stocks like Apple, Amazon, and Tesla.

STT on selling of delivery depends on the value of the transaction and is calculated as a percentage of the total transaction value.

• STT on selling of delivery is charged at 0.1% of the total transaction value for equity delivery trades.

• For example, if you sell stocks worth Rs. 1,00,000 in the delivery segment, the STT charged would be Rs. 100.

• STT is automatically deducted by the broker at the time of the transaction.

• STT is a regulatory charge imposed by the government to curb...read more

Put and call options are financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

• Put option: Gives the holder the right to sell an asset at a specified price before a certain date.

• Call option: Gives the holder the right to buy an asset at a specified price before a certain date.

• Options are commonly used in financial markets for hedging or speculation.

• Example: A put option on a stock with a ...read more

The process to take over client money involves proper documentation, client consent, and regulatory compliance.

• Obtain written consent from the client to transfer their funds

• Ensure all necessary documentation is completed accurately

• Follow regulatory guidelines and compliance procedures

• Transfer the funds securely to the designated account

• Maintain records of the transaction for audit purposes

Repo rate is the rate at which the central bank lends money to commercial banks, while reverse repo rate is the rate at which the central bank borrows money from commercial banks.

• Repo rate is currently at 4.00% in India as of September 2021.

• Reverse repo rate is currently at 3.35% in India as of September 2021.

• Repo rate is used by the central bank to control inflation and stimulate economic growth.

• Reverse repo rate is used to absorb excess liquidity in the banking system.

There are multiple segments in the market including equity, commodity, currency, and derivatives.

• Equity segment

• Commodity segment

• Currency segment

• Derivatives segment

The best option strategy depends on individual risk tolerance, market conditions, and investment goals.

• Consider factors such as volatility, time decay, and direction of the underlying asset

• Popular option strategies include covered calls, protective puts, straddles, and iron condors

• It is important to thoroughly understand each strategy and its potential risks before implementing

Investing in blue-chip stocks is considered a safe option in the equity sector.

• Blue-chip stocks are shares of well-established, financially stable companies with a history of reliable performance.

• These stocks are less volatile compared to small-cap or mid-cap stocks.

• Investors can also consider diversifying their portfolio to reduce risk.

• Researching and analyzing the company's financial health and market position is crucial before investing.

Yes, I have worked with XYZ brokerage firm for 2 years.

• Worked as an Equity Dealer with XYZ brokerage firm for 2 years

• Handled a portfolio of high net worth clients

• Executed trades on behalf of clients and provided investment advice

• Maintained client relationships and ensured customer satisfaction

Yes, I have extensive market knowledge.

• I have been following the stock market for several years.

• I keep myself updated with the latest news and trends in the market.

• I have experience in analyzing market data and making informed investment decisions.

• I am familiar with various financial instruments such as stocks, bonds, and mutual funds.

• For example, I have successfully advised clients on investing in blue-chip stocks and helped them earn significant returns.

The share market is a platform where buying and selling of company stocks and securities take place.

• Share market is a place where investors buy and sell shares of publicly listed companies.

• It provides a platform for companies to raise capital by issuing shares to the public.

• Prices of shares are determined by supply and demand in the market.

• Investors can make profits by buying shares at a lower price and selling them at a higher price.

• Share market can be volatile and influence...read more

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.

• Options are a type of derivative security.

• They are traded on exchanges and over-the-counter markets.

• There are two types of options: call options and put options.

• Call options give the buyer the right to buy an underlying asset at a predetermined price and time.

• Put options give the buyer the right to sell an underlying asset...read more

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• Derivatives allow investors to take on risk without owning the underlying asset.

• Derivatives can be complex and require a thorough understanding before investing.

I have 3 years of experience in equity dealing with a focus on analyzing market trends and making informed investment decisions.

• Analyzed market trends to identify potential investment opportunities

• Made informed investment decisions based on thorough research and analysis

• Managed client portfolios and provided regular updates on performance

• Developed and maintained relationships with clients to ensure satisfaction and retention

An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

• Options are commonly used in the stock market as a form of derivative trading.

• There are two types of options: call options and put options.

• Call options give the buyer the right to buy an underlying asset at a specific price, while put options give the buyer the right to sell an underlying asset at a specific price.

• O...read more

Passion for finance and belief in Samco's vision

• I have always been passionate about finance and investing

• I believe in Samco's vision of making investing accessible to everyone

• Samco's innovative technology and customer-centric approach aligns with my values

• I am excited to be a part of a company that is disrupting the traditional brokerage industry

Financial services refer to the services provided by the finance industry to help manage money and investments.

• Financial services include banking, investment management, insurance, and financial planning

• These services help individuals and businesses manage their money, invest in stocks and bonds, and protect against financial risks

• Examples of financial service providers include banks, investment firms, insurance companies, and financial advisors