What Is ‘Skew’ in the Context of an IV Surface, and How Is It Related to Quote Competitiveness?

Skew refers to the difference in implied volatility for options with the same expiration but different strike prices (moneyness). A competitive quote must accurately reflect the market's current skew, which often prices out-of-the-money puts higher than calls due to demand for downside protection.

A market maker whose quotes are inconsistent with the prevailing skew will be easily picked off and deemed uncompetitive.