Two-Sided Market Making Interview Questions
Two-sided market making interview questions for quoting bid and ask around a midpoint with spread, skew, and risk controls.
Candidates new to two-sided quoting prompts.
A two-sided quote has bid and ask
The bid is where you are willing to buy, and the ask is where you are willing to sell. Both should relate to your fair value estimate.
Start with midpoint and spread
A simple quote starts from fair value as midpoint, then subtracts half the spread for bid and adds half the spread for ask.
Concrete example
With fair value 80 and a 4-point spread, the symmetric quote is 78 bid and 82 ask before any inventory skew.
Skew when needed
If inventory or information changes, the bid and ask may move asymmetrically. Explain whether you are encouraging buys, sells, or reducing exposure.
Do not quote too tight by default
A narrow quote may look confident but can be fragile when fair value is uncertain or flow is informed.
Common mistakes
Candidates sometimes give only one price. Market-making prompts usually require both sides and a reason for the spread.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.