Major Trading Categories

This problem practices a core Sales and Trading classification question, which tests whether you understand how banks participate in markets, where risk sits, and how different trading businesses make money. It covers the distinction between trading with a firm’s own capital, acting as principal for client flow, executing on a client’s behalf through exchanges, and using electronic systems and algorithms to automate execution. Interviewers ask this because it shows whether a candidate understands market structure, revenue drivers, and the role of traders versus technology in modern capital markets.