What Is Product Market Fit? 2025 Guide
For your product to be successful, customers need to buy it. This means it needs to have demand in the market, known as “product market fit.”
January 6, 2025
Article
This course is part of multiple programs.
Instructor: Marco Pagano
Included with
Recommended experience
Intermediate level
Basic knowledge of mathematics (analysis and theory of games, calculus and game theory), statistics, asset pricing.
Recommended experience
Intermediate level
Basic knowledge of mathematics (analysis and theory of games, calculus and game theory), statistics, asset pricing.
security market; trading; market liquidity and funding liquidity
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Within this course you will learn about price formation and liquidity in securities markets. You will discover the determinants of market depth and security trading. In particular, the course focuses on price formation and liquidity in securities markets. The main issues covered are how to measure trading costs; how security prices, their liquidity and speed of price discovery are jointly determined, and how order flow affects prices; what are the determinants of market depth; how security trading is organized and regulated and how it has been reshaped by algorithmic and high frequency trading; how the organization of security trading affects trading costs and informational efficiency.
This module presents the subject of the course and its main concepts: liquidity and price discovery, and basic notions of trading in securities markets.
21 videos5 readings3 assignments
In this week you will learn that some trading costs are explicit, others implicit, and how to measure trading costs using different types of data. Furthermore, you will learn how to take the time dimension of trading into account.
22 videos7 readings6 assignments
This module talks about price formation in markets with asymmetric information. You’ll understand why in these markets prices respond to the order flow and you’ll know how the informativeness of the order flow affects market liquidity and price discovery.
16 videos4 readings4 assignments
In this week we’ll talk about frictions that contribute to the bid-ask spread and generate mean reversion in prices and you’ll learn about order processing costs. Moreover, you’ll know the imperfect competition among market makers and how inventory holding costs of risk-averse dealers.
16 videos5 readings3 assignments
This week will explain how orders of different sizes have a different impact on prices and how price impact is an inverse measure of market depth. You’ll learn that depth is affected by order flow informativeness, market risk absorption capacity and competition between liquidity suppliers.
17 videos4 readings3 assignments
By the end of this week, you will learn the fundamentals of algorithmic and high-frequency trading, their impact on market quality, and explore policies to mitigate trading speed effects.
15 videos5 readings2 assignments
Founded in 1224, Federico II is the oldest lay University in Europe. With its "Federica Web Learning" Center, it is the leader in Europe for open access multimedia education, and in the world's top ten for the production of MOOCs for providing new links between higher education and lifelong learning. Find out more on www.federica.eu.
Università di Napoli Federico II
Specialization
University of Pennsylvania
Course
Università di Napoli Federico II
Specialization
University of Pennsylvania
Course
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