EduMarkets Market Making

The market making module is a simulation across equities, currencies, and options. Participants run the order book, quote prices to clients, and manage the inventory built up as the market moves. News releases arrive during the session, positions accumulate, and participants decide how wide to quote and when to hedge.

Handbook chapters

  1. What Market Making Is
  2. The Three Kinds of Market Maker
  3. Where the Spread Comes From
  4. Inventory Risk
  5. Adverse Selection and Toxic Flow
  6. Markout
  7. Two-Way Quoting and Skew
  8. Providing vs Taking Liquidity
  9. Making Markets Through News and Events
  10. Quoting in Volatility
  11. Hedging the Options Book
  12. Obligations and the Systemic Role

Tools and exercises

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