AdvancedMultiple choice
Quoting with inventory · Part 3 of 3
You make a market in a future you value at 50.00, normally quoting 49.80 @ 50.20. After a run of trades you hold a large long position.
Your limit is 20 lots either way. Having started long 10, you sold 28 lots on those four fills and are now short 18. What is the priority for the next quote?
- AQuote so that a buy from you is unlikely, even if it costs edge
- BKeep the same width and let the flow decide
- CTighten the market to increase volume and average out the position
- DFlatten immediately by buying at any price
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