How Delta Hedging Actually Works
How delta hedging works in practice: the shares a short option book is forced to buy and sell at each close, and why round trips cost the hedger money.
#market makers
Filtering by topic #market makers · clear
How to Become a Registered Market Maker
How to become a market maker: exchange registration, two sided quoting size and width rules, net capital under Rule 15c3-1, and what suspension means.
Why Market Makers Lose Money: Adverse Selection
Why do market makers lose money? Adverse selection is the main channel. See how markout curves measure it, plus inventory risk and queue position costs.
Who Are the Biggest Market Makers?
Who are the biggest market makers? The firms that quote US stocks and options, and how to read your own broker's Rule 606 report to see who fills your orders.
Why Your Options Order Isn't Getting Filled
Why your options order isn't filling: exchange priority rules, pro-rata allocation, resting size that reprices, and net-price routing for spreads.
How Do Market Makers Make Money? The Spread
What market makers do and how they earn the bid-ask spread, with real tick data: measured spreads, quote updates per second, and the SQL behind every number.