After a fast one-sided run, skew or widen?
Asked at Optiver, IMC
You are lifted several times quickly in a suddenly fast market. You know two levers: skew (shift your mid up or down) and widen (increase the total spread symmetrically).
Explain what each lever is for, and decide which one this situation calls for.
Show a hint
One lever has a direction; the other does not. Match each to the kind of thing a burst of fills tells you.
Your answer
This one is open-ended. Work it through, then check your reasoning against the full solution.