Market Making Interview Prep for Beginners
A beginner-friendly path for market-making interview prep: vocabulary, fair value, bid/ask quotes, spreads, simple drills, and next steps.
Candidates new to market-making games and trading interview vocabulary.
Learn the quote language
A two-sided market has a bid, where you buy, and an ask, where you sell. The midpoint reflects fair value and the spread reflects uncertainty and compensation for risk.
Start with fair value
Before setting a quote, estimate what the object is worth under the rules. This may come from probability, expected value, mental math, or a simple payoff table.
Concrete example
If a ticket pays 100 with probability 50 percent, fair value is 50. A beginner quote might be 48 at 52 if uncertainty is modest and you are flat.
Practice the loop
Repeat a simple loop: estimate fair value, quote a spread, observe a trade or signal, update fair value, update inventory, then requote.
Common mistakes
Beginners often memorize words without using them. Bid, ask, spread, inventory, and skew only matter when they change the next decision.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.