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02
Markets, Trading, and Market Making
How markets and order books work, who trades and why, and the business of making markets.
The first two lessons are free to read. Membership unlocks the full course and tracks your progress.
Become a Member01Market Fundamentals
02The Order Book
Bids, Asks, and the SpreadMembers
Order TypesMembers
Market Depth and Queue PriorityMembers
Trade Matching and ExecutionMembers
03Market Participants
Participant Types and MotivationsMembers
Informed and Uninformed Order FlowMembers
Brokers, Dealers, and ClearingMembers
04Liquidity and Execution
Measuring LiquidityMembers
Market Impact and SlippageMembers
Execution StrategiesMembers
05Risk, Leverage, and Short Selling
Positions, Exposure, and Profit and LossMembers
Leverage and MarginMembers
Short Selling MechanicsMembers
Risk Limits and DrawdownsMembers
06Market Making Fundamentals
The Role of the Market MakerMembers
Spread Capture and RevenueMembers
Adverse SelectionMembers
07Inventory Management and Quoting
Inventory RiskMembers
Quote SkewingMembers
Spread Width and UncertaintyMembers
08Market Microstructure
Tick Sizes and Price IncrementsMembers
Order Flow AnalysisMembers
Latency and SpeedMembers
09Game Theory in Trading
Games of Private InformationMembers
Auction Theory FundamentalsMembers
Equilibrium ConceptsMembers