Optiver Software Engineer Interview Questions + Guide in 2024

Founded over three decades ago, Optiver has established itself as a leader in its field, recognized as a technology-driven leading trading company and a global market maker.

As the financial firm continues to evolve, there is a growing demand for software engineers to create and implement trading systems.

If you’re currently considering applying for this role, then this Optiver Software Engineer Interview Guide is for you.

It’s structured to make sure that by the time you finish, you’ll be more than prepared to confidently face Optiver’s interview process.

Optiver aims to keep its hiring processes as simple and smooth as possible.

Their interview process involves various stages, including initial screening, HackerRank Test, and System Design to evaluate your programming skills and technical abilities.

Now, let’s break down the process step by step.

1. Application

The first step is submitting your application on the Optiver career website by submitting an updated resume and a cover letter. You can also put in your application via an employee referral or by reaching out to a recruiter on LinkedIn.

2. Technical Assessment

If your skills and experiences align with the Software Engineer requirements at Optiver, you will get an invite to a few technical assessments to check your technical abilities and problem-solving skills. You’ll be invited to a HackerRank test, which consists of multiple choice questions and a few programming questions. The coding challenge can be in C, C++, and Java.

3. System Design Round

Next up, you could be asked to design a simplified version of the brokerage system tailored for a single user. This step emphasizes on testing your networking knowledge, including TCP, UDP, and UDP multicast.

4. HR Screening

Once you have passed the technical rounds, a virtual interview will be scheduled by the recruitment team to get to know you better. This step aims to get to know you beyond your CV and focuses on understanding your compatibility with the company’s work environment and values.

5. Final Interview

Lastly, there is a final interview which usually comprises a conversation with Optiver’s Chief Technology Officer and team members. Discussing your experiences and projects, and diving into the systems they work with. It’s not just about technicalities; they’ll also assess cultural fit, ensuring alignment with Optiver’s values for a collaborative and innovative workplace.

Here are the questions that are commonly asked in a Software Engineer interview at Optiver.

1. Tell me what motivated you to work here at Optiver?

This question aims to understand your motivations, values, and alignment with Optiver’s culture and values. It helps the interviewer assess if you have done research on the software engineer role at the the company.

How to Answer

While answering, be authentic and highlight particular aspects of Optiver that resonate with you. Also, mention your interest in the company’s industry reputation, its innovative and technology-driven environment, or any values and practices that align with your own.

Example

“I am motivated to work at Optiver because of its renowned reputation as a leading technology-driven trading firm. I am drawn to the challenging and dynamic nature of the work here, and the emphasis on innovation aligns perfectly with my passion for staying at the forefront of technology. Furthermore, Optiver’s commitment to fostering a collaborative and high-performance culture resonates with my own values. I am eager to contribute my skills in such an environment, driving technological advancements and contributing to the success of the team.

2. Tell me about a time when you handled a situation where your team member had a different point of view about doing a project.

The interviewer can ask this to test your interpersonal skills and ability to navigate collaborative work environments, essential qualities needed for the role of a software engineer at Optiver.

How to Answer

When answering this question, emphasize your communication and collaboration skills. Describe how you actively listen and understand your team members’ perspectives to work towards a consensus. Highlight your previous experience in this area to illustrate your approach.

Example

“In a previous project, a team member and I had different opinions on the project architecture. To address this, I initiated a meeting to openly discuss our viewpoints, focusing on understanding each other’s concerns. Through collaborative brainstorming, we found a middle ground that incorporated the strengths of both approaches. This not only led to a more effective solution but also strengthened our working relationship. I believe fostering open communication and valuing diverse perspectives is essential for delivering successful projects in a team environment.”

3. Describe some ideas and initiatives you’ve led in the past. What was the outcome?

This question tests your capacity for innovation, leadership and the impact of your initiatives on past projects. Optiver seeks software engineers who not only excel in technical proficiency but can also drive and contribute to meaningful improvements in software development processes.

How to Answer

When answering, showcase projects where you initiated and led innovative ideas in software development in past. Discuss the challenges you faced, the strategic actions you took, and the outcomes achieved.

Example

“In my previous role, recognizing a constraint in our deployment process, I proposed and implemented a containerization strategy using Docker. This initiative significantly reduced deployment times, enhancing our overall development lifecycle efficiency by 40%. It not only streamlined the release process but also led to improved collaboration among development and operations teams. This initiative showcased my proactive approach to addressing challenges and resulted in a more agile and efficient software development environment.”

4. Do you prefer to work with others or alone?

Optiver values both individual expertise and effective teamwork. This question is intended to test how well you can adapt to different work scenarios, collaborate with a team, and contribute effectively to various environments being a software engineer.

How to Answer

While answering, discuss your ability to work effectively in both team and independent settings. Discuss experiences where you successfully contributed to team projects and instances where you excelled while working on individual tasks.

Example

“I can work in both collaborative and independent work settings, which I believe aligns well with the dynamic environment at Optiver. In team projects, I bring strong collaboration and communication skills, fostering an environment where diverse perspectives lead to innovative solutions. Simultaneously, when working independently, I leverage my self-motivation and focus to deliver high-quality results. This adaptability has been evident in my past experiences, ensuring I can contribute effectively to both individual and team-oriented projects at Optiver.”

5. Tell me about a time when you had to adapt to a change in project. How did you handle it?

To assess your adaptability, problem-solving skills, and ability to navigate changes in project requirements which is a crucial aspect of being a software engineer at Optiver.

How to Answer

Provide a specific example from your experience where you faced a change in project requirements. Highlight the steps you took to adapt, including communication with team members, reassessment of project goals, and any other modifications you made to ensure successful project completion.

Example

“In my previous role, we faced a sudden change in project requirements due to shifting business priorities. To handle this, I initiated a team meeting to discuss the changes needed. I facilitated open communication, ensuring everyone understood the updated objectives. We collectively reassessed our approach, reprioritized tasks, and adjusted the project timeline accordingly. By maintaining transparency and a collaborative spirit, we successfully adapted to the changes, delivering a product that met the revised requirements on time.”

6. How would you handle the implementation of fractional shares in a financial trading system, considering both technical and business implications?

This question is asked to assess your understanding of the technical challenges and business considerations involved in implementing fractional shares, a key aspect of being a software engineer at Optiver.

How to Answer

To answer this question, discuss the technical aspects of implementing fractional shares, such as precision in calculations, data storage, and adjustments to trading algorithms to accommodate fractional quantities. Highlight the business implications and address how you would handle potential challenges.

Example

“To implement fractional shares, I’d ensure precision in calculations, adapt data storage to accommodate fractional quantities, and modify trading algorithms to seamlessly handle fractional share transactions. This will ensure accuracy and consistency in trade executions. On the business side, I’ll introduce fractional shares that can enhance accessibility for a broader range of investors, potentially increasing trading volumes. To address potential challenges, I’ll implement error-handling mechanisms. This will include addressing precision errors, validating calculations, and ensuring that dividend distributions are accurately proportioned.”

7. What is the difference between interface-oriented, object-oriented, and aspect-oriented programming?

This question aims to assess your understanding of different programming paradigms. At Optiver, software engineers need to design and implement complex trading systems, hence understanding various programming paradigms is crucial.

How to Answer

To answer this question, start by providing concise definitions for each programming paradigm, emphasizing the key differences between these paradigms.

Example

“In object-oriented programming, the primary focus is on encapsulating behavior and data into objects. This promotes modularity and code reuse through concepts like classes, inheritance, and polymorphism.

Interface-oriented programming centers around defining contracts (interfaces) that specify a set of methods without prescribing the implementation. This enables different classes to implement the same interface while providing their own unique implementations.

Aspect-oriented programming introduces the concept of aspects that separate cross-cutting concerns, such as logging, security, or error handling, from the core business logic. AOP provides a way to modularize and manage these concerns independently.”

8. Write a Python code to find the minimum number in a list of integers. If the list is empty, the function should return ‘None’.

This question assesses your ability to write a fundamental Python function. It assesses your proficiency in handling edge cases, such as an empty list, and tests your understanding of basic list operations and conditional statements, which are key concepts needed for the Optiver Software Engineer role.

How to Answer

To answer this question, design a function that takes a list of integers as input and returns the minimum value. Also, include logic to handle the case when the list is empty.

Example

“I would create a Python function named ‘find_minimum’ that takes a list of integers as its parameter. Inside the function, I’ll initially check if the list is empty using ‘if not list.’ In case of an empty list, I would return ‘None’ as specified. For a non-empty list, I’ll use the built-in ‘min()’ function to find the minimum value. This function simplifies the process of finding the minimum without the need for explicit iteration.”

9. What is the difference between structure and arrays?

This question aims to test your understanding of data structures and is relevant for assessing your grasp of core programming concepts. Optiver seeks software engineers with a solid understanding of data structures for efficient algorithm implementation.

How to Answer

To answer this question, begin by providing clear definitions for both structures and arrays. Explain their basic characteristics and purposes. Emphasize the key differences and discuss common uses.

Example

“In programming, structures and arrays are two distinct data structures with different purposes and characteristics. An array is a collection of elements of the same data type stored in contiguous memory locations. Elements in an array are accessed using an index. Arrays are particularly useful when dealing with a homogeneous set of data, like a series of numbers. A structure, on the other hand, is a composite data type that groups together variables of different data types under a single name. Each variable in the structure is referred to as a member or field. Structures can store a combination of different data types.”

10. Explain the differences between Z-tests and T-tests, and provide a practical scenario where you might choose to use one test over the other. How would you interpret the results?

This question is asked to evaluate your statistical knowledge, problem-solving ability, and communication skills in selecting and interpreting Z-tests and T-tests relevant to potential software engineering scenarios.

How to Answer

To answer this question, start by briefly explaining the fundamental differences between Z-tests and T-tests. Describe a scenario relevant to the software engineering context. Explain why, in the given scenario, you would choose one test over the other. Describe how you would interpret the results.

Example

“Z-tests are appropriate when dealing with a large sample size or when the population standard deviation is known, while T-tests are more suitable for smaller sample sizes or when the standard deviation is unknown. For example, in a software optimization project comparing the average performance of two algorithms, we might not have sufficient data initially to accurately estimate the population standard deviation. In such a scenario, a T-test would be more appropriate due to its efficiency with smaller sample sizes and its ability to work with estimated standard deviations. Interpreting the results involves examining the p-value. If the calculated p-value is below our chosen significance level, say 0.05, I would reject the null hypothesis.”

11. How can you detect a cycle in a linked list?

This question can be asked in an Optiver Software Engineer interview to evaluate your problem-solving skills, as well as your ability to work with data structures, which is crucial for developing efficient algorithms in algorithmic trading systems.

How to Answer

One common approach is to use two pointers, often referred to as the slow pointer and the fast pointer. You can also describe using Floyd’s Tortoise and Hare Algorithm This is an efficient algorithm for cycle detection in a linked list. If there’s a cycle, the slow and fast pointers will eventually meet. Use a hash set to store visited nodes. If you encounter a node that is already in the set, there is a cycle.

Example

“I would approach the problem using Floyd’s Tortoise and Hare Algorithm. I would start by initializing two pointers, the slow pointer and the fast pointer, both set to the head of the linked list. The slow pointer would move forward one step at a time, while the fast pointer would move two steps at a time.

While traversing the linked list, I would continuously check if the slow pointer and the fast pointer are pointing to the same node. If they ever meet, it indicates the presence of a cycle in the linked list. The algorithm is efficient and guarantees the detection of a cycle if it exists. It works well for both large and small linked lists. This approach has a time complexity of O(n), where n is the number of nodes in the linked list, and a space complexity of O(1), as it doesn’t require additional storage beyond the two pointers.”

12. Write a function to calculate the standard deviation of a list of numbers without using built-in functions like numpy.std(). Explain your approach.

This question is asked to test your understanding of statistical calculations, algorithmic implementation, and considerations for numerical stability. It also assesses your ability to build essential functions from scratch, which is crucial for the Software Engineer role.

How to Answer

To answer this question, begin by explaining the algorithm you plan to use, detailing the steps involved in calculating the standard deviation. Discuss the time and space complexity of your implementation. Also, address how your function will handle edge cases such as an empty list or a list with a single element.

Example

“To calculate the standard deviation without using built-in functions, I would start by checking for edge cases. If the list has fewer than two elements, it’s not possible to calculate the standard deviation, so I would return ‘None.’ Assuming the list has sufficient elements, I would then proceed to the calculation. Firstly, I’d find the mean by summing up all the numbers and dividing by the length of the list. Next, I’d calculate the squared differences from the mean for each number in the list. Afterward, I would compute the variance by summing up these squared differences and dividing by the length of the list. Finally, I’d take the square root of the variance to obtain the standard deviation.”

def calculate_standard_deviation(numbers):
    if len(numbers) < 2:
        return None
    # Step 1: Calculate the mean
    mean = sum(numbers) / len(numbers)
    # Step 2: Calculate the squared differences from the mean
    squared_diff = [(x - mean) ** 2 for x in numbers]
    # Step 3: Calculate the variance
    variance = sum(squared_diff) / len(numbers)
    # Step 4: Calculate the standard deviation
    std_dev = variance ** 0.5
    return std_dev

13. Explain the process of dynamic memory allocation in C.

This question tests your understanding of memory management in C. Optiver, being involved in algorithmic trading, may seek candidates who can efficiently manage memory to optimize the performance of trading systems.

How to Answer

Describe how dynamic memory is allocated on the heap using functions like ‘malloc ‘and ‘calloc’. Emphasize the need for manual memory management and the responsibility of the programmer to free allocated memory using ‘free‘ to avoid memory leaks.

Example

“For dynamic memory allocation in C, the heap is utilized. Functions like ‘malloc’ and ‘calloc’ allow us to allocate memory on the heap. Unlike the stack, memory on the heap must be manually managed by the programmer. Failing to free allocated memory can lead to memory leaks, where the program consumes more and more memory without releasing it. The ‘free’ function is used to release memory allocated on the heap.”

14. What are the key differences between Lasso and Ridge Regression? Provide a practical scenario where you might choose one over the other.

This question is asked to assess your understanding of regularization methods like Ridge and Lasso regression. It also evaluates your ability to make informed choices based on real-world scenarios.

How to Answer

To answer this question, start by defining Ridge and Lasso regression as regularization techniques used in machine learning. Highlight key differences and explain how both methods address multicollinearity. Provide a scenario where you might choose one over the other based on the characteristics of dataset.

Example

“Ridge and Lasso regression are regularization techniques employed in machine learning to combat overfitting. They both introduce a penalty term to the cost function, encouraging the model to use fewer features and address multicollinearity. Ridge employs the L2 norm penalty, summing the squared values of coefficients, while Lasso uses the L1 norm penalty, summing the absolute values.

In a practical scenario, if I were dealing with a dataset containing highly correlated features, I might opt for Ridge regression. This is because Ridge tends to shrink coefficients toward zero without necessarily eliminating them, making it suitable when all features may be relevant. On the other hand, if I were interested in feature selection and wanted to enforce sparsity, I might choose Lasso, which has the capability to drive certain coefficients to exactly zero.”

15. How will you define MVC architecture?

This question tests your understanding of fundamental architectural patterns. At Optiver, where sophisticated trading systems are developed, candidates are evaluated on their ability to create well-structured and modular code.

How to Answer

Begin by defining the three main components of MVC: Model, View, and Controller. Explain their respective roles in the architecture.

Example

“MVC (Model-View-Controller) is an architectural pattern that divides software applications into three key components. The Model handles data and business logic, the View manages the user interface, and the Controller acts as an intermediary, handling user input and updating both the Model and View. This separation enhances code organization, scalability, and maintainability. For instance, in a web application, the Model deals with data storage, the View presents the UI, and the Controller manages user input. MVC provides code reusability, clear separation of concerns, and ease of maintenance.”

16. Given a database table of bank transactions containing columns id, transaction_value, and created_at, write a SQL query to retrieve the last transaction for each day. The output should include the id of the transaction, datetime of the transaction, and the transaction amount, ordered by datetime.

This question assesses your SQL querying skills and ability to work with date and time data. It evaluates your understanding of grouping, ordering, and retrieving specific information from a database. Because at Optiver, precision and efficiency in handling financial data are crucial.

How to Answer

To answer this question, start by using the ‘GROUP BY’ clause to group transactions by the date part of the ‘created_at’ column. Then utilize the ‘MAX’ function to find the maximum datetime for each date, effectively getting the last transaction for each day. After that join the result with the original table on the composite key of date and maximum datetime. At the end, use the ‘ORDER BY’ clause to sort the final results by datetime.

Example

“To retrieve the last transaction for each day from the bank transactions table, I would first group the transactions by their respective dates using the ‘GROUP BY’ clause on the date part of the ‘created_at’ column. In a subquery, let’s call it t2, I would then use the ‘MAX’ function to find the maximum datetime for each date, effectively identifying the last transaction timestamp for each day.

Next, I’d perform a join between the original transactions table and t2 using a composite key involving the date and the maximum datetime. This would allow me to fetch the specific details of the last transaction for each day, including the transaction ID, datetime, and transaction amount.

To ensure the final output is ordered chronologically, I would use the ‘ORDER BY’ *clause on the original ‘created_at’ column.”

17. Write a function ‘rain_days(n)’ in python to calculate the probability that it will rain on the nth day after today, considering the given probabilities based on whether it rained yesterday and today. Assume that today is day 0. Explain your approach concisely.

This question evaluates your ability to design a function based on a probability scenario, reflecting real-world decision-making under specific conditions. Quantitative analysis is crucial at Optiver, this tests your mathematical and coding skills in modeling and calculating probabilities.

How to Answer

To answer this question, I will design a function ‘rain_days(n)’ that takes the day number ‘n’ as an input and calculates the probability of rain on that day. I will implement conditions based on the information provided regarding the probability of rain given whether it rained yesterday and today. At the end, I will return the calculated probability for the nth day.

Example

“If tasked with creating the ‘rain_days’ function, I would start by considering the conditions given in the problem statement. First, I’d handle the edge case where the input day number ‘n’ is negative, returning an error message like “Invalid input. Day number should be non-negative.”

For days 0 and 1 (representing today and tomorrow), the probability of rain is specified in the problem statement, so I would directly return 0.2 for these cases.

For subsequent days (n > 1), I would leverage the information that if it rained yesterday and today, the probability of rain is 20%, and if it rained only one of the days, the probability is 60%. Therefore, I would use a conditional statement to check if the day number is even or odd, setting the probability accordingly.”

18. You’re given two dataframes. One contains information about addresses and the other contains relationships between various cities and states. Write a function complete_address to create a single dataframe with complete addresses in the format of street, city, state, zip code.

This question is asked to assess a candidate’s ability to manipulate and combine dataframes, a common task in data processing and analysis, which is relevant in financial settings at Optiver. The ability to merge and transform data efficiently is crucial for tasks like risk assessment and trend analysis.

How to Answer

To answer this question, start by understanding the structure and content of the two dataframes. Identify the common key(s) that can be used for merging. After that, describe perform any necessary data cleaning or preprocessing steps. Then, merge the two dataframes using the appropriate keys to create a single dataframe. Use the merged dataframe to create a new column.

Example

“If given two dataframes, one containing address information and the other detailing relationships between cities and states, I would approach this task systematically. First, I’d examine the structure of both dataframes to identify common keys for merging, ensuring a seamless integration.

After merging the dataframes, I would create a new column in the unified dataframe to hold the complete addresses. This involves combining information from the street, city, state, and zip code columns. I’d use string concatenation or formatting to achieve the desired address format. To handle potential edge cases, such as missing or inconsistent data, I’d implement conditional checks and data cleaning steps.”

19. Write a function, friendship_timeline, that takes two lists of dictionaries, friends_added and friends_removed, containing user_ids and created_at times. The function outputs pairs of friends with corresponding timestamps for friendship beginnings and endings.

This question tests your ability to work with data structures, manipulate lists of dictionaries, and generate meaningful outputs. In financial contexts like those at Optiver, understanding and manipulating data efficiently is crucial for various tasks, including analyzing patterns in market behaviors.

How to Answer

To answer this question, begin by describing the extraction of the relevant information from the given lists of dictionaries, focusing on user_ids and created_at timestamps. Then, combine the information from friends_added and friends_removed based on user_ids to create a unified dataset that includes both friendship beginnings and endings. Sort the combined dataset based on the created_at timestamps. At the end, generate the desired output format, listing pairs of friends along with the corresponding timestamps.

Example

“If given two lists of dictionaries representing friendship beginnings (friends_added) and endings (friends_removed), I would approach this task systematically. First, I’d extract the relevant information, specifically the user_ids and created_at timestamps, from both lists.

Next, I would combine the information from both lists based on user_ids, creating a unified dataset that includes both friendship beginnings and endings. Sorting this dataset based on the created_at timestamps would give me a chronological timeline of friendship events.

Finally, I would generate the desired output, listing pairs of friends along with the corresponding timestamps for both the beginning and ending of their friendship.”

20. When a random integer between N and M is input as the max value for another random function with the same min value N, what’s the distribution and expected value?

This question tests your understanding of probability and random processes, which is relevant in the Software Engineer role at Optiver, involving algorithmic trading and financial modelling.

How to Answer

To answer this question, begin by understanding the described process. Then, consider how the two random functions interact and how this affects the distribution of samples. Then, identify key characteristics such as the range of possible values and the likelihood of different outcomes. Lastly, calculate the expected value of the resulting distribution.

Example

“I would start by recognizing the constraint on the second function’s output range—limited by the initial random value. I would reason that the resulting distribution is a mixture of uniform distributions, with each one corresponding to a different value of X. To calculate the expected value, denoted as E(Y), I would average the outcomes in the range [N, M], weighted by the probability of each X. The precise mathematical expression would depend on the distribution of X. If X is uniformly distributed between N and M, the calculation would involve integrating over this range. The resulting distribution would be a composite of uniform distributions, offering a concise yet insightful understanding of the expected values in this scenario.”

Now that you have an idea about the types of questions that will be asked at the Optiver Software Engineer interview, here are some tips to ace the interview.

Understand the Tech Landscape

First, familiarize yourself with Optiver’s tech stack and recent technical advancements. Visit their website and gather as much information as possible about the position you’re applying for. Doing so will help you align your skills and tailor your resume accordingly.

Practice for the HackerRank Test

To strategically prepare for the HackerRank test, practice coding problems and make sure you cover a wide range of topics, programming languages, and data structures.

Explore our Learning Path feature for in-depth insights into coding challenges and further practice opportunities. Additionally, our Takehomes are an excellent resource for practicing and revising core concepts.

Showcase Problem-Solving Skills

While approaching a technical challenge in an interview, break down your solution to clear and simple steps. Showcase how you can simplify complex problems and communicate your thoughts effectively.

You can also check out our Challenges where you can practice and test out your problem-solving abilities.

Communicate Effectively

In the technical interview, make sure to openly share your thoughts and communicate effectively while solving problems. Don’t hesitate to ask clarifying questions to ensure mutual understanding, which showcases your communication skills.

Enhance these skills and build confidence by practicing with our Mock Interviews. Take advantage of our Coaching feature as well for expert guidance to excel in your interview.

Practice Data Structures

Dedicate focused time to practicing various data structures, such as arrays, linked lists, stacks, and queues. Strengthen your problem-solving skills by solving coding challenges that involve these structures.

To gain access to a comprehensive set of questions and challenges related to data structures, practice using our Interview Questions. This resource is tailored for preparing you for your Software Engineer Interview at Optiver.

Here are some common questions frequently asked by candidates applying for the Software Engineer role at Optiver.

What is the average salary for Software Engineer role at Optiver?

The average base salary for a Software Engineer at Optiver is $120,719. Adjusting the average for more recent salary data points, the average recency weighted base salary is $119,546.

If you want to read more about software engineer salaries, then head on over to our main software engineer salary guide.

Are there job postings Optiver’s for Software Engineer positions at Interview Query?

No, there are no current job postings specifically for Optiver’s Software Engineer position at our platform. However, we encourage you to explore our Job Board, where you can discover opportunities from a variety of other companies in the tech industry.

As a Software Engineer, which other companies can I apply to?

You can apply to companies like Google, Microsoft, and Amazon, as well as innovative startups and fast-growing companies. Make sure to review our Company Interview Guides, which offer customized advice for different positions within various organizations, to assist you in preparing for your upcoming interview.

At Interview Query, our goal is to assist you in securing a Software Engineer position at Optiver.

For a comprehensive understanding of the company, we recommend exploring our main Optiver Interview Guide. This guide not only covers the Software Engineer role but also provides insights into Optiver’s Data Analyst and Scientist positions.

By making use of the information in our guides, improving your technical skills, and tackling problem-solving challenges head-on, you will be thoroughly prepared for your Software Engineer interview at Optiver.

We hope this has been helpful in your preparation, and we wish you the best of luck.