Trading Scenarios & Roleplay

Read these first

1. 01Quoting a Market When You Have a Position Limit

   A market-making game where you can't just quote the 'fair' price forever, once your inventory gets close to its limit, your quotes have to lean the other way, and the puzzle is working out exactly how much.

2. 02The Winner's Curse

   In an auction where the item's true value is the same for everyone but unknown, winning the auction is itself bad news, it means you were the most overoptimistic bidder in the room.

Then the rest

1. 03Hedging Immediately After You Get Hit
2. 04Hitting a Risk Limit Mid-Trade
3. 05Quoting When the Other Side Has Seen Something
4. 06Reacting to a Sudden News Shock
5. 07Reading a Run of One-Sided Flow
6. 08Second-Price Auctions and Truthful Bidding
7. 09Should You Add to a Losing Position
8. 10Spotting an Arb Across Two Quoted Markets
9. 11The First-Price Auction Roleplay
10. 12They Ask for Size on Your Market
11. 13Unwinding a Position Before the Close