Introduction

This guide is jointly developed by three PGP mentors currently working in Sales and Trading at bulge bracket investment banks. It provides a structured overview of the technical components most commonly tested in S&T interviews. For candidates preparing for trading roles, these are core skill sets rather than optional topics, and a disciplined understanding of them will directly impact interview performance.

At a high level, S&T interviews assess one thing: your engagement with markets. Interviewers typically rely on a small number of recurring question types to evaluate how you process information, form views, and communicate under pressure. The core areas can be grouped into four categories: stock pitch, market discussion, asset allocation, and technical definitions.

01|Stock Pitch

A stock pitch is almost guaranteed to appear in any S&T interview, although it should not be interpreted too narrowly. While equities are the most common format, candidates may also pitch other instruments such as FX or fixed income, depending on their familiarity. The objective is not the asset class itself, but your ability to structure a view, support it logically, and communicate it with conviction.

A well-structured pitch typically consists of five components. You begin with a clear recommendation, stating your position in one sentence, including long or short, the company name, and the current price level, followed by a brief introduction of the business. This is followed by two to three key drivers that form your investment thesis, each presented with a concise statement and supported by relevant detail.

The next step is the catalyst. Markets are relatively efficient, which means widely known information is often already reflected in the price. A strong pitch explains what will move the asset in the direction you expect and why that has not yet been fully priced in. This is often where weaker candidates fall short.

You then provide a simple valuation framework, such as comparables or a high-level DCF, to support your view. The goal is not precision, but coherence. Finally, you address risks. A strong candidate acknowledges uncertainty and can clearly articulate what could invalidate the thesis. Overall, a strong pitch is defined not by complexity, but by clarity, structure, and conviction.

02|Market Discussion

Discussing market news is a fundamental skill in Sales and Trading. In practice, clients regularly ask for views on macro developments, specific securities, or overall market direction. Interviews replicate this dynamic to assess both your interest in markets and your ability to think in real time.

A strong market discussion begins with a concise summary of a recent event, typically in two to three sentences, focusing on what actually happened rather than unnecessary background. This is followed by a description of market reactions, which may include movements in equity indices, interest rates, or currencies.

However, the most important part is your interpretation. Many candidates stop at describing events, but interviewers are primarily interested in your ability to form a view. You should clearly articulate your perspective and explain the logic behind it. This naturally leads into a forward-looking view, where you outline how you expect the market to evolve and provide reasoning to support that expectation. The ability to move from facts to views is what differentiates strong candidates.

03|Asset Allocation

Asset allocation is another core interview topic, often framed as a portfolio construction question. For example, you may be asked how you would allocate a hypothetical portfolio across different asset classes. The intention is to test whether you can think beyond a single instrument and approach markets from a broader, portfolio-level perspective.

A strong answer begins with clarifying the context. Understanding the investor’s risk tolerance and investment horizon is essential, as these factors directly influence the structure of the portfolio. A long-term, conservative allocation will look very different from a short-term, high-risk strategy.

Once the context is established, your allocation should reflect diversification across multiple asset classes, such as equities, fixed income, foreign exchange, and commodities. Concentrating solely on equities signals a limited understanding of markets. At the same time, your allocation must be anchored in a macro view. Without this, recommendations appear arbitrary. A well-structured answer connects each allocation decision back to an overarching market perspective and can be delivered clearly within a short time frame.

04|Technical Definitions

In addition to applied questions, interviews also test fundamental concepts through definition-based questions. These may include topics such as the yield curve, effective federal funds rate, or the factors that influence option pricing.

Candidates with a background in economics or finance often have an advantage, as these concepts are typically covered in coursework and can be refreshed quickly. For candidates without this background, the challenge is greater, but still manageable with structured preparation. What matters is not memorizing isolated definitions, but understanding how these concepts connect to real market behavior.

05|Closing Thoughts

S&T technical interviews are not about memorization alone. They are designed to assess how you think about markets, how you structure your reasoning, and how you respond under pressure. Strong candidates combine technical knowledge with the ability to form and defend views in real time.

With a disciplined framework and consistent practice, the majority of technical questions in S&T interviews can be mastered efficiently. The difference ultimately lies in clarity of thought, structure of communication, and the ability to translate knowledge into conviction.