Market Making

Mar 25 2018
 
  • Market making refers broadly to trading strategies that seek to profit by providing liquidity to other traders while avoiding accumulating a large net position in a stock. In the simplest terms, a market maker helps facilitate the execution of a trade by providing a continuous bid-and-ask market for a futures or options contract to any interested party, hoping to make a profit by exploiting the difference between the two prices, known as the spread. Intuitively, a market maker wishes to buy and sell equal volumes of the instrument (or commodity), and thus rarely or never accumulate a large net position, and profit from the difference between the selling and buying prices. Market making often requires placing and cancelling lot of orders and BlitzTrader SmartOrder command enables quant developer to effectively place new, modify and cancel orders at desired price level

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