New answers tagged arbitrage
2
votes
Do market-makers often act as a taker (cross the spread) in other markets or assets while hedging?
Yes, the market maker, MM, while delivering liquidity in off-runners, i.e. the less liquid instruments, from time to other takes liquidity (that's the market-taking in the question) in the most liquid ...
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3
votes
Do market-makers often act as a taker (cross the spread) in other markets or assets while hedging?
Short answer: Yes.
Long answer: Yes, but not always and it depends on a tonne of reasons like fee structure, spread, rebates, hedging requirements at the time etc etc.
Fundamentally, (ignoring rebates)...
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