market making

Discussion in 'Options' started by jenek-cowboy, Feb 1, 2008.

  1. asteroid

    asteroid

    Firsrt of all, market makers dont hedge each 2 options with a future. They calculate overall delta of their portfolio and hedge it.

    There are a lot nuances in marketmaking, especially in Russia. To be short, you'll need a sizeable amount of money to do it and for it to be profitable.
     
    #11     Feb 2, 2008
  2. hajimow

    hajimow

    You can not do that in IB but you can do it in Fidelity and many other brokers but I don't trust Fidelity or other brokers and their commission is high.
     
    #12     Feb 2, 2008
  3. and the problem don't resolve..May be i has expressed my thoughts uncorrect..
    In Russia this method named "trade in spread".I must set my demand on buy in best place on buy..and set the demand on sell in best place on sell..How anybody do this ?
    From Russia with Love :)
     
    #13     Feb 15, 2008
  4. MTE

    MTE

    Become a market maker.
     
    #14     Feb 15, 2008