Market-Making Simulator

Build expected-value games and a quoting engine that manages inventory, adverse selection, and P&L.

Medium1.2 hours14 steps

Overview

Build expected-value games and a quoting engine that manages inventory, adverse selection, and P&L.

What you'll learn

Optimization Simulation Risk

FULL WALKTHROUGH

Learn every step on its own page

This project is no longer compressed into a few chapters. Open the dedicated learning workspace for a lesson-by-lesson explanation with concepts, MathJax mathematics, code, tests, mistakes, checkpoints, and persistent navigation.

Open 14-step walkthrough →

Build progress

0 / 14 steps0%

Move the tracker as you finish the original Deep-ML steps. Reaching 100% unlocks the completion action and certificate.

Architecture

Work through the system one dependable layer at a time. Each stage feeds the next and remains independently testable.

01Expected value→

02Bid-ask spread→

03Inventory risk

∑

Mathematics & visual explanation

Translate the core equations into code, validate intermediate tensors, and compare the implementation with a small numerical reference.

objective(θ) = data_term(θ) + λ · regularization(θ)

The exact objective evolves with each milestone. Keep a notebook of shapes, invariants, and numerical checks.