Role of Market Makers & Liquidity Providers
Institutions often rely on market makers for tight bid-ask spreads.
Market makers hedge every trade using delta-neutral strategies.
Their presence helps institutions build or unwind large positions without disrupting prices.
Institutional Examples in Option Trading
Hedge Funds: Use volatility arbitrage, gamma scalping, dispersion trading.
Insurance Firms: Use long-dated puts to hedge annuity products.
Banks: Write structured products with option-like features (e.g., equity-linked notes).
Asset Managers: Use protective puts or collars on core portfolios.
Institutions often rely on market makers for tight bid-ask spreads.
Market makers hedge every trade using delta-neutral strategies.
Their presence helps institutions build or unwind large positions without disrupting prices.
Institutional Examples in Option Trading
Hedge Funds: Use volatility arbitrage, gamma scalping, dispersion trading.
Insurance Firms: Use long-dated puts to hedge annuity products.
Banks: Write structured products with option-like features (e.g., equity-linked notes).
Asset Managers: Use protective puts or collars on core portfolios.
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Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.