market making

Quote from jenek-cowboy:

hello.I am trader from Russia. I want to make mechanical system that set a demand on buy about 5% lower than theotic price and set a demand on sell about 5% higher than theoric price in option market and if i have 2 option in position than i sell 1 future to hedge my position. Have anybody do this in american market of options????
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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.
 
Quote from MTE:

You can't have simultaneous open orders on both sides of the market at the same time. Only market makers can do that, but since you are not a market maker you cannot do that.
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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.
 
Quote from 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.
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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 :)
 
Quote from jenek-cowboy:

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 :)
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Become a market maker.
 
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