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 Do market makers go against a clients position?
 
 4/15/2007 8:17:38 PM
User is offlinefrancesco
66 posts
www.tescari.com




Do market makers go against a clients position?
By definition, a market maker is the counterpart to all its clients' positions, and always offers a two-sided quote (two rates: BUY and SELL)). Therefore, there is nothing personal between the market maker and the customer. Generally market makers regard all of the positions of their clients as a whole. They offset between clients' opposite positions, and hedge their net exposure according to their risk managment policies and the guidelines of regulatory authorities.
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