inventory-risk

1 free lesson tagged inventory-risk across AI. Each one is a short sequence of focused steps with narration and a five-question quiz at the end — take them in any order, no signup required.

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Market Making: Inventory, Adverse Selection, and What RL Adds

A market maker quotes both sides and profits from the spread, but every fill leaves an unwanted position and the counterparties who trade most eagerly are the ones who know something. This lesson simulates the inventory-skew trade-off, showing a 63 percent cut in exposure for 2.5 percent of profit, and locates where a learned policy genuinely helps.

10 steps·~15 min

Market Making: Inventory, Adverse Selection, and What RL Adds

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