Trading Games Interview Prep
How to prepare for trading games in quant interviews: fair value, risk, calibration, game rules, and review loops.
Candidates facing trading games or simulation-style interviews.
What trading games test
Trading games test whether you can make decisions with incomplete information. You need fair value, risk sizing, speed, and the discipline to update. The best candidates learn during the game rather than waiting for a postmortem.
Concrete example
In a game where a hidden number is drawn and players trade claims on it, your first quote should reflect both your estimate and uncertainty. As trades arrive, ask what the counterparty might know and whether your inventory is becoming one-sided.
How to practice
After each game, review three numbers: your fair value estimate, your spread, and your realized inventory. Then identify the decision that cost the most expected value. This turns a noisy game into a training loop.
Common mistakes
Candidates often confuse activity with edge. Trading more is not automatically better. If you cannot explain your price, your size, and your update rule, slow down and rebuild the model.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.