Anyone work for a market making firm?

L

liltrdr

I'm just curious. Before the market collapse, I was seriously considering working at an options market maker in Chicago. It seemed like great money with low risk if you could get in. After all, you get to see all the order flow right?
Anybody ever work for one of these firms? Or know anybody that did? What's it like? I'd appreciate any info. I've already researched it on the company websites and message boards (like vault). Just wanted to see if any ex-mms are on this board.
 
I know some friends who have worked at option market making firms. From what they've told me, the structure is alot like a prop firm. You salary is almost entirely dependent on your output for the firm, and there is a high turnover rate as the firm continually hires new people and then fires them in a couple weeks if they can't hack it.
 
I didn't know turnover was so high. I was wondering if I could get the emails of your friends Htrader. I'm partly curious and also I want to work in that field when the market turns around. Until then, my plan is to build up my account and learn to trade. Thanks for replying Htrader. Good luck monday.
 
it is not as easy as you think. i don't think the success rate is that high. for starters, you will start as low man on the totem pole. do not expect the longer term traders being of much help.

in any event, while most firms may pay out as htrader mentins, not all firms pay a percent of profits/(losses). Timber Hill for one hires and trains potential market makers to follow their system of screen based prices. There is a salary and a bonus. There are a few other firms that trade in a similar fashion.
 
I don't expect it to be easy. However, if I have a trading background (and some success), I believe the odds of success go up. Mainly, I was just curious as to what the job was like and how the current environment was. It's just something I want to keep as an option for when the good years come.
 
I was a market maker at the cboe, what kind of information are you looking for? It was a grind and stressful but I can't imagine a better place to learn the business.
 
Thanks for replying man. I'm going to graduate school soon and I just wanted to find out what kind of people these firms look for? Are they just looking for the quantitative math types or any major? And what was your day like? What's the current environment like? Is it a good time to get in? Is options market making becoming less or more profitable? Just any kind of info really. And what firm did you work for Dagve?
 
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