How Do Automated Quoting Engines Manage Inventory and Risk for Crypto Derivatives?

Automated quoting engines dynamically adjust bid/ask spreads based on the provider's current inventory position (delta). They use sophisticated pricing models, like Black-Scholes for options, to calculate fair value in real-time.

Risk limits are enforced automatically to prevent overexposure to specific assets or Greeks. The engine continuously monitors market conditions to manage hedging requirements and maintain capital efficiency.