HELP CENTRE
Follow

What is Market Making?

In certain instances when a Trader wishes to ‘SELL his Futures’, Football INDEX may cash out that Trader’s bets (ie BUY them back and hold them) even if there is not an immediate Buyer for the Futures.

This is known as Market Making and is done to increase liquidity in the market and enable Traders to sell more quickly. Consequently Football INDEX takes on the liability for the Futures until a Buyer appears.

As this creates a liability for Football INDEX this is not done in all cases and is a discretionary service.

Football INDEX never profits from market making beyond the 2% trading commission that it makes from all sales, and market making never has any impact on the sale price, or the price that the next Trader pays for the Futures.

Consequently Market Making is a purely neutral activity that has no affect beyond speeding up the time taken to Sell Futures.

Comments

Powered by Zendesk