Interview questions
Market Making quant interview questions
62 interview-style market making problems, ordered from easy to hard.
Market making interview questions simulate the job of a trader quoting two-sided prices. You will be asked to make markets on uncertain quantities, size bets with edge, update quotes after trades reveal information, manage inventory and reason about adverse selection. Strong candidates combine quick expected value calculations with sensible risk management and clear communication of their bid and ask. This topic collects interview-style market making and trading problems, from pricing simple games to sequential games where the counterparty may know more than you. Free problems include hints and step-by-step solutions explaining both the numbers and the trading intuition. Combine them with mental math drills, since speed and accuracy with arithmetic are essential when you are quoting live in a trading interview.
Practice Market Making interactivelyEasy (12)
- Uninformed Spread Profit · Market Making · Spread
- Uninformed Spread Profit, Second Instance · Market Making · Spread
- Midpoint and Spread of a Quote · Quotes and Spreads
- Recovering the Ask · Quotes and Spreads
- Round Trip Through the Spread · P&L
- Inventory After a Customer Buy · Inventory
- Covering Part of a Short · Inventory
- Spread in Basis Points · Quotes and Spreads
- Two Customers, Both Sides · P&L
- Picked Off on a Stale Quote · Adverse Selection
- Realized P&L on a Round Trip · P&L
- Half-Spread in Basis Points · Quotes and Spreads
Medium (30)
- Kelly Fraction for an Even-Money Bet, Second Instance · Kelly Criterion
- Fair Value of a Binary Payoff · Fair Value
- Selling Above Expected Value · Fair Value
- Buying a Coin-Flip Asset · Fair Value
- Edge Times Size · Fair Value
- One Order, Asymmetric Arrival · Order Flow
- Losing to Informed Flow · Adverse Selection
- Expected P&L With No-Trade Intervals · Adverse Selection
- Break-Even Against Mixed Buyers · Adverse Selection
- Bid Against Informed Sellers · Adverse Selection
- Mark-to-Market After Uneven Fills · P&L
- Ending Inventory · Inventory
- Chained Inventory Updates · Inventory
- Average Acquisition Cost · Inventory
- Mark-to-Market on a Long · P&L
- Mark-to-Market on a Short · P&L
- Partial Fills on Both Sides · P&L
- Basis-Point Spread · Quotes and Spreads
- Quoting a Target Spread · Quotes and Spreads
- Uneven Flow Over a Session · P&L
- Expected P&L of Two Outcomes · Fair Value
- Break-Even Informed Fraction · Adverse Selection
- Spread Revenue Net of Adverse Selection · Adverse Selection
- Inventory-Adjusted Reservation Price · Inventory Skew
- Reservation Price Across Inventories · Inventory Skew
- Quoting Around a Reservation Price · Inventory Skew
- Skewing a Quote · Inventory Skew
- Choosing a Bid by Fill Probability · Quote Optimization
- Choosing an Ask by Fill Probability · Quote Optimization
- Expected P&L With Execution Risk · Quote Optimization
Hard (20)
- Adverse Selection Quotes · Market Making · Adverse Selection
- Kelly Bet Sizing · Betting · Kelly Criterion
- Kelly Sizing With Non-Even Odds · Kelly Criterion
- Kelly Fraction With Net Odds, Second Instance · Kelly Criterion
- Expected P&L and Inventory Drift · Order Flow
- Minimum Spread Against Information · Adverse Selection
- Asymmetric Flow and Information · Adverse Selection
- Break-Even Ask · Adverse Selection
- Break-Even Bid · Adverse Selection
- Losing on One Side Only · Adverse Selection
- Covered Call Payoff in Two States · Hedging
- Variance of Mark-to-Market P&L · Risk
- Mean and Variance of Independent Trades · Risk
- Bid Selection With Conditional Values · Quote Optimization
- Smallest Safe Half-Spread · Adverse Selection
- Mean-Variance Trade Choice · Risk
- Asymmetric Price Impact · Adverse Selection
- Ask Selection With Conditional Values · Quote Optimization
- Interval P&L With Unequal Edges · Adverse Selection
- Bookkeeping a Trading Sequence · P&L