Market Making Interview Cheat Sheet
A concise market-making interview cheat sheet for quote loops, spread, inventory, updates, risk, communication, and final checks.
Candidates who want a compact market-making review before practice or mocks.
Quote loop
Estimate fair value, choose spread, set bid and ask, observe trade or signal, update fair value and inventory, then requote.
Spread reminders
Widen for uncertainty, adverse selection, costs, or large size. Tighten only when confidence, objective, and risk budget justify it.
Inventory reminders
Long inventory means you benefit if value rises and may want to sell more easily. Short inventory means the opposite. Let inventory influence skew and size.
Communication reminders
Say the current state before the quote. A concise reason tied to fair value, spread, inventory, or new information is better than a precise number with no explanation.
Common mistakes
A cheat sheet can support review, but it cannot replace live practice. Use it to catch omissions before and after drills.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.