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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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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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?