Skewed Order Book Strategies

Skewed order book strategies involve intentionally placing more orders on one side of the market than the other to manage inventory or influence price perception. By shifting quotes, a market maker can encourage trades that help rebalance their position.

This is a strategic way to use the order book as a tool for inventory control. It requires a deep understanding of how market participants react to quote changes.

While effective, it must be balanced to avoid signaling too much intent to the rest of the market.