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# System prepended metadata

title: Optiver

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# Optiver
## Intro
- stock and ETFs
- Price from order book: 
  - bid(buy) volume, price, ask (sell) volume
- we have no single price, everyone has their own POV
- bids, price ladder, offers
- best bid?, best ask? 12, 44.6, 146 <-- should probably ask what this means
- bid ask spread = 44.62-44.6?
- we want tight spread in the end

## Liquidity
- I don't understand about this.

## market making
- if the price does not move much we can buy many (save)

## Order Type
- limit order, immediate or cancel
- what happens after the trade? 
- ? what is lots?
- ioc needs the price as input
- limit order is passive but lots of lots
- this is our playground

## short selling
- you can have negative position


## Basket Trading Problem
- calculate price of basket. Example:  0.5 * google + 0.5 * amzon <-- **a must**
- ![](https://i.imgur.com/74FPQ80.jpg)

## Hedging
- reduce the risk (tighter spread means less risk)
- don't reward luck. but luck sometimes is good. ;)

- trade green energy basket (lot of opportunity)
- efficiently make the market back in equilibrium. see the picture where we need to find a good position for pur stock

PRICE: IPHONE 14!