Question for Maverick

How many types of market makers are there? Firms like Timberhill make markets for many products. Anybody have any ideas at all what kind of returns they make per annum on their funds? What about smaller market maker firms or smaller individual locals/market makers? How many out of 10 are profitable over the long run? Sorry if this is out of topic but appreciate any insights.
 
Quote from tyrant:

Market makers have an edge. Do they need to make a directional or volatility prediction in order to profit?
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In the old days market makers attempted to arb options all day through conversions and reversals. Yes, that was an edge as they had single listed options and all the order flow went to them. Once options became dual listed their edge became more difficult to obtain. Now we have tight electronic markets and penny pricing is here, their edge is minimal to none now. I think the original poster was referring to edge for retail screen traders by favoring one strategy over another.
 
MAV,

can you try this scenario: pm comes in and equals the benefits of span margin. would the powers that be who run the future options have a response? additionally, what could it possibly be?

clearly if you have an answer; i understand it is only best guess stuff.

ps: i do understand the difference that a jbo has compared to other trading platforms.
 
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