Applying Deep Reinforcement Learning for Market Making Strategies

The Python Lab
6 min readFeb 25, 2024

In the world of finance, market making plays a crucial role in maintaining liquidity and efficiency in financial markets. Market makers continuously provide buy and sell quotes for a financial instrument, thereby facilitating trading activities. However, market making comes with its own set of challenges, such as managing inventory risk and capturing spread effectively.

In this tutorial, we will explore how Deep Reinforcement Learning (DRL) can be applied to develop market making strategies that address these…

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The Python Lab

Discovering the power of algorithms in Python. Exploring ML, AI, and Deep Learning. Data-driven trading strategies.