Recruiter's Glossary

Examples: Jensen's Alpha • Yield Curve • Monte Carlo Simulation

Futures

Term from Investment Management industry explained for recruiters

Futures are financial agreements that let investors buy or sell something at a set price on a future date. Think of them like pre-ordering a product, but for investments. They're commonly used in investment firms to help clients protect their investments from price changes (called hedging) or to make profits from market movements. When you see this term in a resume, it usually means the person has experience with these types of trades, understands how to manage the risks involved, and knows the rules and regulations that govern futures trading.

Examples in Resumes

Managed Futures trading desk with $50M in client assets

Developed risk management strategies using Futures contracts for institutional clients

Executed and monitored Futures trades across commodity and financial markets

Typical job title: "Futures Traders"

Also try searching for:

Futures Trader Derivatives Trader Investment Manager Futures Broker Commodity Trader Financial Derivatives Specialist Portfolio Manager

Where to Find Futures Traders

Professional Organizations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How do you approach risk management in futures trading?

Expected Answer: A senior trader should discuss position sizing, stop-loss strategies, portfolio diversification, and monitoring market conditions. They should also mention experience with risk management systems and regulatory compliance.

Q: Can you explain how you've handled a significant market volatility event?

Expected Answer: Should demonstrate leadership during crisis situations, explain their decision-making process, risk mitigation strategies, and how they protected client interests during market turbulence.

Mid Level Questions

Q: What factors do you consider when executing futures trades?

Expected Answer: Should discuss market liquidity, timing, price levels, transaction costs, and basic risk management principles. Should show understanding of market dynamics and trade execution.

Q: How do you stay updated with market news and regulations?

Expected Answer: Should mention reliable information sources, daily routines for market analysis, and how they keep track of regulatory changes affecting futures trading.

Junior Level Questions

Q: What is a futures contract and how does it work?

Expected Answer: Should be able to explain in simple terms what futures contracts are, their basic features, and common uses in investment management.

Q: What's the difference between futures and other financial instruments like stocks?

Expected Answer: Should demonstrate basic understanding of how futures differ from stocks, including leverage, contract specifications, and settlement processes.