4 ms·
The width of your spread should be inversely proportional to your certainty about the price level. If you are an unsophisticated maker, you have to quote wider
by jovial_cavalier 4y ago
The width of your spread should be inversely proportional to your certainty about the price level.
If you are an unsophisticated maker, you have to quote wider, and yes you will probably get hit very very rarely. But occasionally someone comes through and just needs to unload something as quick as possible, and they will put in a market order to basically take the whole one side of the book and trade down to your level.
Obviously not super profitable, but not losing either! If I knew an easy way to make markets as a retail trader and be wildly successful, I wouldn't blab about it ;)