When should you quote inside the competition?
Asked at Optiver, IMC
The best market from other participants is bid, at . You could join at those prices, or step inside, say bid, at , to be at the top of the book and win more of the incoming flow.
When is quoting tighter than the competition the right move, and what is the hidden cost of always doing it?
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.