How can an individual profit from the bid/ask spread? Is there anyway that I can become a market maker?
http://www.thememoryhole.org/corp/finance/sec_amex_report.htm Try market-making in options. The bid-ask spreads are wide. They have also whipped the SEC into submission. The SEC caught them in serious, repeated violations (see link above). The SEC said so, in an internal report that has sinced leaked to the media. The SEC also caught them falsifying reports to cover up the violations, and the SEC Still can't stop them. It's clear sailing to do anything you want when you trade options.
Yes. Become a floor-based market maker. A previous thread mentioned the "holy grail" in trading. How would you like to get the chance to disavow a trade after you've held it for awhile - or not fill on your disseminated quotes? See the report in the link above. The goldrush is on. When you're on an options floor, you can now do anything you want to the "public". The options industry has gotten together and rendered the SEC helpless and unable to enforce the rules. A word to the wise - options market making.
Options may be the fastest growing financial instrument in North America. That, in combination with little or no rule enforcement, make for excellent profit opportunities.