Market Making Interview Prep
A guide to market making interview games, fair value, spread setting, inventory risk, adverse selection, and calibration.
Quant trading candidates preparing for market making interviews.
What market making interviews test
Market making interviews test fair value estimation, uncertainty, spread discipline, inventory management, and quote updates. The interviewer watches whether you learn from trade flow instead of defending your first number.
Concrete example
If you estimate a jar has 800 coins but your uncertainty is high, a quote like 650 at 950 is more defensible than a tight 790 at 810. If buyers keep lifting your offer, your fair value or spread is probably wrong.
How to practice
Use a loop: estimate fair value, choose width, quote, observe trades, update, and manage inventory. Practice saying why the market moved: new information, adverse selection, inventory pressure, or reduced uncertainty.
Common mistakes
Candidates quote too tightly before they understand the distribution, ignore inventory, or move quotes without explaining why. A wider market with a clear reason is better than precision theater.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.