Quant Interview Market Making Drills
Focused market making drills for quant trading interviews, covering fair value, spread width, quote updates, inventory, and review logs.
Trading candidates practicing market making and trading game interviews.
Drill fair value
Start by estimating fair value from incomplete information. Write the estimate, the uncertainty drivers, and the reason. Do not quote a market before you know what value the market is centered on.
Drill spread width
Practice choosing width from uncertainty, adverse selection, and inventory risk. A wide quote with a reason is better than a tight quote that pretends uncertainty is low.
Drill updates
After each trade or new clue, update fair value, width, and inventory. Say whether the update comes from information, risk, or position pressure.
Concrete drill set
Run a ten-round market making game and log fair value, bid, ask, trade, inventory, and reason. Review the worst two decisions, not only final profit and loss.
Connect to communication
Market making drills should be spoken aloud. Interviewers need to hear why you moved the market, not just see the final quote.
Common mistakes
Candidates often trade too much, ignore inventory, or judge the session only by outcome. Review decision quality because variance can hide good or bad process.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.