MM (Market Making)

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Market Making is an activity where a trading firms would provide liquidity to a marketplace or a venue for a set of financial assets (which are listed in the venue). MM trading strategy consists in simultaneously providing quotes both a bid (buy) and an ask (sell) price for a given financial asset, thereby providing liquidity to the market.This activity can sometimes be governed by minimal set of market making obligations, such as minimum level of participation often to achieve a specific status within a marketplace. . A Market Making system dynamically adjusts these prices based on market conditions, inventory, and hedging of the capital at risk.