Comments (5)

Most Helpful
Aug 8, 2022 - 8:31pm
trader7, what's your opinion? Comment below:

First of all, if you made the market 14 at 16, he would be buying 16 and you'd be selling. Second of all you have to balance a few things, one being your confidence in your guess and another in whether or not your interviewer is playing optimally. If you're confident then you can move less, and not cross own markets. If you're not confident, you don't want to anchor to a bad guess. To exhibit what I'm saying let's give an example of that same game. For the sake of this example I'm gonna tweak one or two things then what you did, but let's leave the actual fair value at 22 and pretend you know nothing. Let's also assume your interviewer is going to act optimally- I think normally they will. You make your first market 28 at 30 and he sells 28, you buy. Now, let's say you make your next market 24 at 26. This is where him playing optimally comes in- since he is going to play optimally and he knows its 22, he going to sell 24. He could make a risk free profit and buy 26 and lock in a $, but he would actually be leaving $ on the table. Now you know its below 24. Maybe you make your next market 19-21. He buys 21 and now you know its between 21-24. Yeah you've essentially "hacked" and locked in a loss on those trades, but you've now gained info that allows you to make a better market and thats especially important when your interviewer knows the answer and is acting optimally.  Hope that helps, feel free to ask any follow-up questions.

Aug 8, 2022 - 10:31pm
traderwannabe123, what's your opinion? Comment below:

Thanks for your thorough explanation (and agree on the correction). If you may, there are some questions that i have from the above.1) I'to recover once you know the othe, right?

Aug 8, 2022 - 11:41pm
trader7, what's your opinion? Comment below:

Et qui vel minima libero ipsum in. Culpa non molestiae et et aut. Et inventore voluptatum voluptatem sit. Animi iste aut excepturi nemo nihil quae repudiandae. Eum cum voluptatem sint laborum animi blanditiis asperiores. Qui iste facilis dolores exercitationem occaecati.

Nihil neque nihil voluptatem sed est. Sunt quaerat occaecati quos quidem. Iure facilis hic voluptatem eos sed ipsam.

Est tempora vero odit rerum sint. Accusantium nulla odit et. Corrupti facere quia reprehenderit rerum illum nihil. Tenetur commodi fugiat a at dicta. Odio deserunt aut iste quo et consequuntur.

Start Discussion

Career Advancement Opportunities

September 2022 Investment Banking

  • Jefferies & Company (▲05) 99.6%
  • Lincoln International (= =) 99.2%
  • Bank of America Merrill Lynch (▲04) 98.8%
  • Financial Technology Partners (+ +) 98.5%
  • Evercore (▽02) 98.1%

Overall Employee Satisfaction

September 2022 Investment Banking

  • Jefferies & Company (▲12) 99.6%
  • Greenhill (▲07) 99.2%
  • Evercore (▲02) 98.8%
  • PJT Partners (▽02) 98.4%
  • Macquarie Group Limited ABN (▲21) 98.1%

Professional Growth Opportunities

September 2022 Investment Banking

  • Jefferies & Company (▲05) 99.6%
  • Lincoln International (▲03) 99.2%
  • PwC Corporate Finance (▲12) 98.8%
  • Bank of America Merrill Lynch (▲05) 98.5%
  • Houlihan Lokey (▲05) 98.1%

Total Avg Compensation

September 2022 Investment Banking

  • Director/MD (10) $613
  • Vice President (38) $392
  • Associates (211) $257
  • 2nd Year Analyst (131) $163
  • 3rd+ Year Analyst (19) $160
  • 1st Year Analyst (441) $150
  • Intern/Summer Associate (83) $150
  • Intern/Summer Analyst (320) $92