Neutral Trading Strategies don't work in these markets

Discussion in 'Trading' started by elitetrader02, Mar 13, 2020.

  1. Traders with neutral trading strategies shut down their books same with market makers
    market makers for the mot part are neutral traders.

    no taking positions over the weekend for stocks or futures. now. rare to see futures gap down or up alike this. afterhours I suspect very little liquidity. thursday night was no bid at all.seem like the market was going to crash even more.before the gov't came in to buid. or known as the PPT or gov't wired in the money.

    I don't see with no volume that the options market even hava book of bid and ask in options for futures or stocks yet no volume no trades.
     
    comagnum likes this.
  2. Robert Morse

    Robert Morse Sponsor

    I’m not sure what you are saying. Crazy volume and activity is the dream of a MM. Add to that wider spreads and that’s a party.
     
    tommcginnis, MACD, Fx-Game and 3 others like this.
  3. guru

    guru


    WTH are you talking about? You don't know absolutely anything about the stock market?
    Market makers make most money during such volatile times.
    Here are a few headlines about just one of the large market makers:

    upload_2020-3-13_15-43-2.png

    upload_2020-3-13_15-42-34.png
     
    qlai likes this.
  4. In fairness, we did get a decrease in liquidity and it's natural for a market maker to decrease his quote sizes when his inventory risk goes up.
     
  5. Robert Morse

    Robert Morse Sponsor

    In 1999, I reduced my trade size as a market maker by about 75%. Same for most of 2000. My 2 best years by far.
     
    Last edited: Mar 13, 2020
  6. Real Money

    Real Money

    The only thing with any depth is the ten year. Rate futures that used to have >20 lot on the bid and offer are 4-5 ticks wide. It's unbelievable. The ES book is really thin and the other indices are illiquid as fuck.

    Market is nearly unrecognizable...
     
    comagnum likes this.
  7. Were you? :)
     
  8. Robert Morse

    Robert Morse Sponsor

    Amex floor- I was an independent market maker trading mostly Options on Nasdaq stocks like AAPL.
     
  9. Bob, I was making a quip about "sane for most of 2000" :)
     
  10. Robert Morse

    Robert Morse Sponsor

    Typo while typing on my phone....same, never sane.
     
    #10     Mar 13, 2020
    Same Lazy Element likes this.