After getting a warm welcome of the 2 guests from Optiver and admiring our new Optiver socks, there was a short presentation about Optiver and their business activities. First, they
explained how Optiver provides liquidity to the market as an electronic market maker. Next, we discussed the essential characteristics and skills you have to possess to be a good trader. One of the traders from Optiver also visualised how a day as a trader would look like, and introduced us to some basics about options. Finally, some of the conditions for you to join the Optiver team were discussed, such as, the famous math test.
This math test we got to experience hands-on, since this was part of the case Optiver had prepared. In 8 minutes time we had to answer 80 questions about addition, subtraction, multiplication and division, no calculators allowed. After the math test, we moved on to the trading game. In this trading game, we got to experience how it feels to be the market maker.
We got random question, for example the distance between Dubai and Tokyo if I remember correctly, and transformed these measurements into derivatives. Next, everyone got the opportunity to set a bit and an ask price with which they create a market. After some intensive trading, the goal was to have made a profit on your trades.
To conclude, Optiver created a very insightful picture of the company operates and provided a fun and interactive case which showed the fundamentals of being a market maker.
Written by Laurens Schoonhoven