PRACTICE GUIDE SIG
SIG Market Making Practice Test
Susquehanna (SIG) does not publish the shape of its market making screen, and candidates describe it as 6 to 20 questions in 10 to 30 minutes, roughly one to three minutes per question, answered by typing the number, with no calculator.
Those are ranges across firms running this format rather than Susquehanna (SIG)'s own figures, so treat them as the shape to train against and check the instruction screen on the day for the marking rule.
Outcry is not affiliated with Susquehanna (SIG) and has no access to their assessment content. This guide describes an assessment format that candidates report publicly; the questions here are generated by Outcry and are not Susquehanna (SIG)’s own.
What it screens
A global quantitative trading firm famous for teaching decision-making through poker.
- ✓Setting a bid-ask spread that reflects your uncertainty
- ✓Updating quotes after a fill (adverse selection - the person who traded knows something)
- ✓Inventory management: skewing quotes to flatten a position
- ✓Hedging exposure instead of letting it build
Where it sits at Susquehanna (SIG)
A global quantitative trading firm famous for teaching decision-making through poker. What that means for the screen is that the questions tend to be drawn from the work rather than from a textbook, so the format below is the shape to train against rather than a syllabus.
Candidates also report 4 other screens at Susquehanna (SIG), covered separately on this site. Where a firm runs several, they usually sit in one round rather than spread across the process, so the pacing of the whole set matters more than any single section.
The format
Susquehanna (SIG) does not publish this screen's shape, and it varies between firms, so these are the ranges candidates report rather than exact figures.
| Questions | 6 to 20 |
|---|---|
| Time | 10 to 30 minutes |
| Per question | one to three minutes |
| Negative marking | No |
| Answer style | Typed price, spread or size |
| Where it sits | Later round, often live with a trader |
What it tests, with a worked example
Every example below is generated by Outcry, drawn from the same question generators the timed drills run. None of them is Susquehanna (SIG)’s.
Quoting a two-sided market
A bid and an ask around a fair value, wide enough to survive being wrong.
Example
HOW IT SCORES One of the 13 rows is drawn at random as the winning row. Every row is equally likely. A letter scores its own row number minus the winning row number, and a wager pays that score in dollars per unit. ROW LEFT RIGHT --------------------- 1 R X 2 P M 3 N C 4 A V 5 Z U 6 F Y 7 O B 8 S G 9 W T 10 H I 11 L D 12 Q K 13 E J
A market maker offers you 25 units of B at minus 4 a unit. What is the expected profit in dollars?
Answer 100
B is worth 7 - 7 = 0. Paying minus 4 leaves 4 of edge a unit, so 25 × 4 = 100.
Pricing under partial information
Half the board is hidden, and the quote has to price what you cannot see.
Example
HOW IT SCORES One of the 13 rows is drawn at random as the winning row. Every row is equally likely. A letter scores its own row number minus the winning row number, and a wager pays that score in dollars per unit. ROW LEFT RIGHT --------------------- 1 P Z 2 G C 3 H R 4 X Y 5 O E 6 Q V 7 T K 8 L U 9 B N 10 ? ? 11 ? ? 12 ? ? 13 S I Rows 10 to 12 are face down. Between them they hold A, D, F, J, M, W, but not in any stated order.
How wide is the range of possible values for one unit of M, in dollars?
Answer 2
M is worth 3 at the lowest row on offer and 5 at the highest, a spread of 2. That is uncertainty about the wager itself, on top of the winning row draw.
Adverse selection
Whoever trades with you may know something. Size and spread are the defence.
Example
HOW IT SCORES One of the 13 rows is drawn at random as the winning row. Every row is equally likely. A letter scores its own row number minus the winning row number, and a wager pays that score in dollars per unit. ROW LEFT RIGHT --------------------- 1 G A 2 V O 3 E R 4 I Q 5 K L 6 Y X 7 N S 8 H W 9 T U 10 Z B 11 M P 12 J D 13 F C
You cannot lose more than $60 on this position under any outcome. What is the largest whole number of units of A you can hold?
Answer 5
The worst case is row 13 winning, which costs 12 a unit. 60 ÷ 12 = 5, so 5 units. Sizing on the worst case is a different number from sizing on the average.
Updating on a fill
Being lifted is information. The next quote should not be the same as the last.
Sizing the trade
How much to do at your own price, which is a different question from what the price is.
Example
HOW IT SCORES One of the 13 rows is drawn at random as the winning row. Every row is equally likely. A letter scores its own row number minus the winning row number, and a wager pays that score in dollars per unit. ROW LEFT RIGHT --------------------- 1 L S 2 U M 3 V P 4 D I 5 Q X 6 W J 7 E O 8 C N 9 H F 10 K Y 11 G R 12 A T 13 B Z
You have to show a two-way market 2 wide on G, centred on fair value. Where is your bid, in dollars?
Answer 3
G is worth 11 - 7 = 4. A market 2 wide centred there is 3 bid, 5 offered.
Talking while you think
These rounds are scored on the reasoning you say out loud, not only the number you land on.
What a good score looks like
There is no score to report on most of these. Market-making rounds are judged on the reasoning you narrate as much as the number you land on, which is why candidates describe them as the hardest round to prepare for and the easiest to improve at.
How to train for it
- 01Get fast on fair value first. You cannot quote around a number you are still computing.
- 02Play a round where you get filled and have to re-quote. The update is what the round is actually testing.
- 03Separate the two questions every time: what is it worth, and how much will I do. Answering them together is what produces an indefensible quote.
TRAIN IT HERE
The drills that match each section
Market Maker
Quote spreads, take fills, and manage inventory against informed flow.
Poker Market Making
Make a market on the sum of card ranks and requote as each card is revealed.
Basket Arbitrage
Spot mispricings between a basket and its components before they close.
Delta Defender
Keep a book hedged as the underlying moves - free to play.
SIT THE FULL BATTERY
All the sections back to back on one clock, marked the way the real screen marks them, with a by-skill breakdown at the end. Included with any pass.
Also reported at Susquehanna (SIG)
Common questions
- Is the SIG market making test multiple choice?
- Reported as typed price, spread or size. Formats move, so treat this as the shape rather than a guarantee.
- How long is the SIG market making test?
- Candidates report 6 to 20 questions in 10 to 30 minutes, roughly one to three minutes per question.
- Is there negative marking on the SIG market making test?
- No. A wrong answer costs nothing beyond the mark you would have earned, so leaving an item blank is never better than guessing at it.
- How do I practise for it free?
- Every drill linked on this page is free to play, with no account, inside a daily run cap. Questions are generated fresh each run, so there is nothing to memorise between attempts.