Market Making Endgame Interview Strategy
Market making endgame interview strategy for finite-round games, inventory unwind, final marks, and remaining risk budget.
Candidates in finite-round trading games.
Endgame changes priorities
Near the end of a finite game, inventory unwind, final mark, and remaining risk budget can matter more than long-run flow.
Know the final scoring rule
If inventory is marked at the end, carrying risk into the final state can help or hurt depending on the mark and position.
Concrete example
If one round remains and you are long near a position limit, you may quote to reduce inventory rather than maximize new spread capture.
Risk budget shrinks
With less time to recover, large new exposures may be harder to justify.
Do not always flatten blindly
Reducing risk is often sensible, but the correct endgame move depends on score, position, fair value, and rules.
Common mistakes
Candidates often use the same quote policy at the end as at the start. Time remaining is part of the state.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.