Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Really detailed explanation! This is essentially it. While there's obviously a bunch more complexity, the essence of market making is just trying not to own a stock, but just buy and sell immediately.

Think about how when you go on holiday and want to change money. Admittedly it's becoming more online now, but when you go to a foreign exchange shop they will have a "we buy" and "we sell" price. They are essentially a market maker. They don't care about having a load of pounds, or dollars or rupees. They just want to buy low and sell high to you, and make the difference!



Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: