How is IB so successful at market making?

Discussion in 'Retail Brokers' started by Option Trader, Mar 26, 2008.

  1. The majority of IB's profits comes from market making, and they are VERY profitable. Is that because IB has lots of clients? Lots of dumb clients? Because they trade only at the ideal moments? Or for some other reason?
  2. Same reason you're so obsessed with everything IB.

    They can't help it.
  3. Options market makers (such as Timber Hill) make money by buying at the bid, selling at the ask and controlling risk.
  4. Div_Arb


    Lord knows I've sent them a fair share of business :cool:
  5. lescor


    Regulations that prevent independent traders from competing with them doesn't hurt their business either.
  6. (1) Technology
    (2) Diversification
    (3) Order flow from IB to Timber Hill
  7. just21


    Last august when the volatility started IB made wide markets when other market makers completely withdrew from the market. When the other market makers are competing then they make less money. Listen to the conference calls on their website for further information.
  8. I hear ya. I know you lusted after selling those BSC 30 puts for 50 cents. What a score, huh.