What does it take to become a successful market-maker? What kind of skills and knowledge does one need? I'm specifically looking at equity market-making with no options.
Think of market maker as the hub of a wheel One side of the wheel is buyers....., the other side sellers Wheel becomes unbalanced â MM brings it back into balance ------------------------------------------------------------------- What you need to be one â lot of money..., and the ability to carry inventory (stock either long or short) for a period of time Although the goal is to end each day net neutral No clue how to actually become one RN
Seek to be employed by investment banks? Doesn't a market maker require some Series-X exam qualifications? As an individual, we can play market maker to buy on bid and sell on ask. But we wouldn't have access to level-3 and order flows.
Technically they are not traders at all â simply there to ensure equilibrium between buyers and sellers exists at all times⦠Having said thatâ¦.. They see both sides of the marketâ¦. They cut deals with big playersâ¦. And, as we all know, they do trade their own accounts (rather their firm's account) Great work if you can get it RN
Read "Trading and Exchanges: Market Microstructure for Practitioners" http://www.amazon.com/Trading-Exchanges-Market-Microstructure-Practitioners/dp/0195144708
Side question: How much continuous probability is there in quantitative trading (or is it mostly discrete)? And will learning time series analysis benefit?