market-making

What problem does it solve?

This Skill addresses the complexities of continuous two-sided quoting in cash markets, focusing on inventory control, spread capture, and quote quality optimization.

Core Features & Use Cases

• Automated Quoting: Dynamically adjust bid and ask quotes based on real-time market conditions, order flow, and volatility.
• Inventory Management: Implement strategies to hedge inventory exposure and minimize market impact.
• Performance Diagnostics: Utilize detailed metrics to monitor spread capture, adverse selection costs, and latency.
• Use Case: Deploy this skill to manage a high-frequency trading strategy that continuously quotes a security, aiming to profit from the bid-ask spread while managing inventory risk.

Quick Start

Run the market making diagnostics script with your input data.