Market Making News Update Interview Questions
Market making news update interview questions for revising fair value, uncertainty, inventory skew, and bid-ask quotes after new information.
Candidates practicing quote updates after clues, news, or signals.
New information can move fair value
A clue or news update can change the expected payoff of the market. Decide whether it changes direction, uncertainty, or both.
Classify the update
Ask whether the update is strong, weak, noisy, already expected, or directly relevant to the payoff.
Concrete example
If a binary event was 50 percent and a reliable signal raises your estimate to 65 percent, a quote centered near 50 is now stale.
Inventory still matters
Even after a news-driven fair-value update, your current position can justify skewing the bid and ask.
Communicate the reason
A strong answer says what information changed, how it changed fair value or spread, and what quote follows.
Common mistakes
Candidates sometimes move a quote because there was news, without explaining whether the news was actually informative for the payoff.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.