Market Making Quote Competition Interview
Market making quote competition interview guide for balancing tight quotes, fill probability, adverse selection, and no-trade risk.
Candidates in games with multiple market makers or competitive quoting.
Competition pressures spread
When other market makers quote too, very wide quotes may not trade. Competitive pressure can force tighter markets.
Tighter is not always better
A tight quote can win flow while losing money if it is picked off or creates too much inventory risk.
Concrete example
If competitors quote 98 at 102 and you quote 90 at 110, you may avoid bad fills but also miss most trades. If you quote 99.9 at 100.1, you may get selected when wrong.
No-trade risk matters
In some games, not trading means missing opportunity or losing competitiveness. In others, avoiding bad flow is valuable.
Choose a defensible tradeoff
Explain why your quote balances fill probability, edge, and risk rather than simply matching or beating a competitor.
Common mistakes
Candidates often try to win every trade. Market making is about profitable flow, not maximum flow at any cost.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.