How Market Makers Decide Where to Quote | The LOCAL Ep.10 скачать в хорошем качестве

How Market Makers Decide Where to Quote | The LOCAL Ep.10

In theory a market maker sits between buyers and sellers and captures the spread without taking a view on direction. In reality every quote is a decision about fill probability, inventory and risk. In this episode of The LOCAL we break down where market makers actually place orders, why “the right price” is always shifting, and how real world constraints such as latency, inventory risk and fee structures make neat academic solutions fail in practice. In this episode you will hear: The core goal of a market maker and why spread capture is not the only objective How spreads relate to probability of fills on a central limit order book Why the academic idea of an optimal price often breaks in live markets The difference between passive and taker orders and how maker/taker fees influence behaviour The role of canary orders, price time priority and fills as information Practical constraints such as risk limits, size splitting and exchange rules Discussion on trading a single instrument and why linear perps often dominate Subscribe for new episodes every week: ‪@TheLocalWMC‬ Also on Spotify, Apple Podcasts, and wherever else you get your fix. Follow us on X: https://x.com/TheLocalWMC