Can you please expand on the "smart" quotes ? or point to some reference material about it? I'm not familiar with the concept. Thanks.
Quotes priced off the hedge, + a margin. Get hit/lifted on the quote, pay the spread on the hedge, and you're done. Next punter please.
This. You can tell the "casinos" from the "gamblers" here very easily... And the "gamblers" are little more than degenerates. Providing liquidity for $$$ is an honest living... Even if society lumps you in market manipulators and retarded degens. Plus there are the Service Providers... Who charge FAT fees, but take zero risk... They promote maximum complexity so they sell you A, B, and C... Or the opposite... anyone can get rich "draining the banks"... Most of the intelligent posters on ET fall into this category.
Exactly. Only people hitting or lifting those quotes are complete morons or completely off their market and don't give a shit
other market makers aggressively screwing-up can be entertaining.. other than the initial pang of worry that it might be "us" off price. good times..
So MM's get filled by the public then? Can they make money on a stock that has a 0.02 spread? Do they prefer a 0.02 spread or a 0.10 spread?