Market Making Simulation

An insightful introduction to the role of a Market Maker

This engaging simulation offers participants a practical introduction to the vital role Market Makers play in financial markets by providing liquidity to facilitate efficient trading.

In our Market Making Simulation… 

Participants compete for client orders based on live market prices across multiple rounds. Teams may end up after a number of rounds with a matched book or large open long or short positions.

In each high-energy round, participants step into the shoes of a Market Maker, where their analytical skills are put to test, interpreting market news and strategically submitting their bid/offer qoutes. The simulation executes trades at the market’s best bid and offer prices, allowing the participants to directly experience the core profit mechanism of a Market Maker – buying low and selling high within the bid-offer spread. 

Operating within realistic market structures

This simulation helps participants navigate the complexities of the market by operating within realistic regulations and established market rules. The multiple rounds give the participants platform to sharpen their competitive edge by observing and reacting to the quoting strategies of other participants. 

Learning outcomes include:

Understand market dynamics: Explain the role of market makers in providing liquidity and facilitating trading in quote-driven markets

Understand market dynamics: Explain the role of market makers in providing liquidity and facilitating trading in quote-drivenmarkets

Master the art of bid-offer quoting: Develop and implement strategies for submitting bid and offer quotes, considering market conditions, competition, and regulatory constraints

Master the art of bid-offer quoting: Develop and implement strategies for submitting bid and offer quotes, considering market conditions, competition, and regulatory constraints

Learn how to capitalise on the spread: Evaluate how market makers' trading positions and spread management influence their profitability and risk exposure

Learn how to capitalise on the spread: Evaluate how market makers’ trading positions and spread management influence their profitability and risk exposure

Get in touch today for a demo of our Market Making Simulation

Get in touch today for a demo of our Market Making Simulation