Practical Learning Resources for Market Making and Inventory Risk

Summary

The document asks for practical resources on market-making routines and common measures, beyond academic research papers. The answer recommends a dealing simulation course as a way to learn practical market-making skills and suggests studying research by considering how models are adjusted when better solutions to recurring problems become available.

Inventory risk is named as an example of a market-making problem with practical relevance, along with a paper proposing a solution and related research. The response is brief and points readers toward resources rather than explaining specific measures, model implementations, or operating practices. It therefore offers a direction for further study, but little evidence about how particular academic models are adopted in production.

Key ideas

• A dealing simulation course is recommended for practical exposure to market making.
• The answer frames practical use of research as adapting models to address recurring problems.
• Inventory risk is highlighted as a market-making topic with applied value.
• The document names resources but does not explain specific metrics or deployment practices.

Tags

# Text book or distilled guide to market making?


# Text book or distilled guide to market making?












Are there any practical articles, blogs or books that describe common practices in market making and how to calculate and use common measures?

The majority of the information I found are research papers. For example, the links in the following question: academic papers about market making

Are there any articles on how the research papers above are used in practice?

## Answer by rupweb (score 2)

https://quant.stackexchange.com/a/14901

I like the question. If you want a practical guide to market making then try the ACI Dealing Simulation Course. That will sort you out... As for how research papers are used in practise, I think it's about tweaking the model, when a better solution to a common problem comes along.

For example, there is practical value in the paper Dealing with the Inventory Risk. A solution to the market making problem and see all the linked academic papers.

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