Fair value
Definition · Level 13 · Interview mechanics
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The average value you expect for the quantity you are quoting: its expected value, said out loud before you quote. Your bid goes below it and your offer above it.
Example
Sum of two dice: fair value 7 (3.5 + 3.5).
Where Tradecraft teaches it
Level 13 · Interview mechanics, in the lesson “Market-making games: your first quote”: Say a fair value, then give a bid and an offer around it, with a width that matches how sure you are.
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