Market makers provide liquidity to the market by quoting bid and ask prices for most of the time. The pricing in absolute terms is not as important as finding relative mispricing. The market microstructure is often used to develop trading strategies.

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Delta Hedge, does large stock move produce a loss?

I dont understand how MM protect themselves from large moves in underlying while being delta hedged. Example: MM sels 1 ATM put and sells 100stock (delta = 1) as a hedge. Now what will happen if next ...
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Reading Recommendations on ETF's / “Factor certificates”

I'm looking for some good papers on exchange traded funds, especially on so called factor certificates (e.g. 2x underlying long, so when the underlying moves 1% the certificate moves by 2%). My ...
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Bid, Ask and pnl allocation

I am quite new to the field of market making and was asking myself the following question: Suppose I have 2 clients: lets call them client 1 and 2. I'm market maker. Client 1 buys 100 shares from ...
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FIX engine for very low latency

We are building a new system where latency is key. Either commercial or opensource, our goal is to have an easy to implement fix engine where low latency is key.
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Target daily ROI for a market-making algorithm

I'm designing a market-making algorithm, I was wondering what a decent ROI / day would be to aim for in such a system?