Welcome to the market making simulator. This is an example, which is different compared to the real deal. This example uses only one market making scenario and asks up to three rounds of market making. The real market making simulator has 50+ market making scenarios and the amount of market making rounds give a better indication of the amount of rounds during the interviews.
The lesson What is Market Making – Simulator Explanation and Interview Setup gives you a step by step elaboration on how the market making game is played during an interview and all the relevant definitions. It also gives a detailed elaboration on the different market scenarios and how the simulator works.
The short explanation of this example market making simulator is as follows. The simulator will ask a question, regarding the length of the Chinese wall. During an interview, the interviewer expects that you do not know the exact number, so you will have to make a market on the length of the wall. You will have to provide a bid- and ask quote. Try to remember your quoted markets, because after some round, there will be some technical questions about your position.
Not clear yet? Or do you want to exercise with more scenarios and more rounds? Take a look at the packages and unlock the market making course.
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- Chinese wall
The Chinese wall is the largest man-made construction worldwide. How many kilometres of the wall is visible these days?
What is your position? (Example: if you are 2 short, write down -2. If you are 3 long, just write down 3)
Give me your maximum guaranteed loss
Is it possible to break even with a neutral position?
What is your break even point?Break even when I shares for the price of (max two decimals) each.
1. Please make a confidence interval of 95%
2. Your market is too wide now. Please make a market with a maximum spread of 100
3. Please make a market with a maximum spread of 100
4. Please make a market with a maximum spread of 100
5. Please make a market with a maximum spread of 100
6. Please make a market with a maximum spread of 100