You must have heard about them. Technical trading interviews often contain market making games. How can you prepare market making games for trading interviews? This blog will elaborate on how you can prepare for them.
Market making games are often an essential part of trading interviews. It gives the interviewer a clear insight in how the candidate reacts under pressure. A good trader has a certain balance of capabilities. One term that you might hear more than once is that a good trader is ‘street wise’. They were often the smart asses with games on the street and find quick solutions to win any game. This is a completely different skillset than just being smart. There are enough examples of STEM-PHD students that don’t make it in trading.
What is a market making game?
You can play a market making game with basically anyone, anyplace, anytime. Market makers follow the information in the market to determine what the price for a certain asset should be. in a very rough way, you can call this “guessing what the real price of the asset is”. This is exactly the same as what you’ll be doing during a market making interview. The interviewer will ask you to “make a market” on, for example, the amount of bikes in Amsterdam. This means, the interviewer wants you to show a buy and a sell quote on how many bikes you think there is in Amsterdam. If you think that there are at least 500k bikes, but not more than 2 million bikes, you make a market of 500k to 2m. If the interviewer thinks it’s more then 2m, he/ she will buy it from you. You are now one lot short at 2m, the interviewer is 1 lot long.
There are different ways that this game can be played and how it proceeds after this first trade. If you want to get insights in the most common ways that the market making games are played during trading interviews, stop Googling for ‘market making game reddit’, ‘Jane Street market making games’, ‘Citadel market making games’ or ‘Optiver market making games’ without finding the tools to help you properly prepare. Check out our market making course and start playing our market making game online.
Playing the game
Our market making simulators help you to speed up the preparation process for your interviews. Normally, you will always need a counter player to help you prepare. This specific person is not always available when you are. Explaining it to new people also takes time. Our market making games are always ready when you are.
There are two different types of games that usually occur during interviews. The ‘classic’ game, and the ‘cards’ game. Both games often occur as part of the interview process, so take your advantage and discover how to prepare them.