General MM / Sell Side Help
Is anyone familiar with these ?
In providing liquidity how do you decide what to buy and sell? Do you go off from what you know the clients need or is looking for? So you buy a position from the market (inter dealer) and sell to the client and then you earn the spread?
Do you get positions from the corporate banking side, I guess this would be if you are in the FIX desk. So the banking side does a deal and they buy the bonds and pour them on the trading desks to distribute. Is that correct and do you know how that process works?
Can you give me some background into how do you price something. Whatever you are trading, how do you decide what levels you are axed in?
Do you make money only on the spreads. So if there is high volatility and people are buying left and right its easy to earn that spread. But in the case people are selling, you can widen that spread but how do you liquidate that position?
Is it correct that by hedging a position the you basically make sure that volatility is accounted for. So if you are buying AAPL stock for example how would you hedge. Also, don't you then also have to be out of the hedge position after. What if you can't get out of your hedge position?
How do you decide to buy a position for yourself, not prop trading but trying to front run?
Are there any reading material on market making specifically. There is so much material for the buy side but I haven't found much for the sell side.
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