Modern Electronic Market Making

Quote from JesseJamesFinn:

Joush Lukeman's book "The Market Maker's Edge", he was a Nasdaq Market Maker for a Tier One Firm. I found his information to be transferable to any type of Market, for $3.00 off Amazon's old books it's worth the price.


Active Trader has a old article how the NYSE Specialist makes a Market in the new electronic world of trading. That's a couple of years ago, are Markets that different from Stocks and Options to Forex and Futures?
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Quite a bit different... larger size, harder to hedge, decimalization in hfft requires automation.
 
There are so many prop groups doing it currently as it is - personally I don't think there is any worthwhile edge in it for an independent. The margins are so small and the execution requirements so expensive to do it correctly ( without getting picked off yourself ). In fact, I have seen many professional prop traders getting squeezed out of this as it is.
 
Quote from bone:

There are so many prop groups doing it currently as it is - personally I don't think there is any worthwhile edge in it for an independent. The margins are so small and the execution requirements so expensive to do it correctly ( without getting picked off yourself ). In fact, I have seen many professional prop traders getting squeezed out of this as it is.
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Hi Bone,

I am not planning to get into this business for the reasons you stated. I need to understand the exact mechanics.

Regards,
redduke
 
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