A career in MarketMaking????

[zz]

I know this will disgust most of us daytraders but I think I wanna become a MarketMaker. I've been daytrading for about 4 months now and am just about even. I love trading and most of my 10 year career in this industry has been on the floor, but when I finally decide to move upstairs it was the best decision I ever made, I really enjoy electronic trading. But I have a family and mortgage etc.. So I would enjoy a salary and benefits etc..Prop firms really dont interst me. Does anyone know what marketmaking entails? Or how much you can expect to make? How do I find out, besides just cold calling or sending a resume. Any connections out there? or ideas, advice?

 

[Htrader]

With the advent of decimalization, pure market makers are a dying breed since the spreads are so low. The big market making firms like Knight are not making any money and have begun shifting to a fee-per-share system. Plus I'm sure its very difficult to find a job in the securities industry in this current environment. Remember that market makers try not to enter discretionary trades, thats left to the proprietary traders. So if you can trade successfully in the market, I'd stick with that.

 

[trader58]

Basically, MarketMaking is daytrading with more RULES. You have to "make a market," which means you always have to be bidding and offering close to the prevailing market. Your performance is analyzed by Nasdaq and there are consequences if you perform poorly. I used to work at Market making firm while I was in college(not as a MM). A few of these guys have had problems with the NASD because of "backing away" and other offenses. And that firm didn't pay salary. But I guess it all depends what firm you work for..and if they are proprietary or institutional. Anyway..good luck, whatever you decide to do.