Market Maker
A Market Maker is a company or person that helps keep financial markets running smoothly by always being ready to buy or sell precious metals, stocks, or other assets. Think of them like a store that always keeps items in stock - they make sure there's always someone to trade with when others want to buy or sell. They earn money from the small difference between their buying and selling prices. This role is essential in financial markets because they provide stability and make it easier for everyone else to trade quickly and at fair prices.
Examples in Resumes
Worked as Market Maker in precious metals, managing daily trading volume of over $10M
Led team of junior Market-Makers in gold and silver trading operations
Developed pricing strategies as Market Making specialist for precious metals desk
Typical job title: "Market Makers"
Also try searching for:
Where to Find Market Makers
Professional Networks
Industry Organizations
Job Boards
Example Interview Questions
Senior Level Questions
Q: How do you handle risk management in volatile market conditions?
Expected Answer: Should explain how they balance trading positions, use hedging strategies, and manage exposure limits. Should mention experience with crisis management and decision-making under pressure.
Q: Describe a situation where you had to adjust your market making strategy to changing market conditions.
Expected Answer: Should demonstrate strategic thinking, ability to adapt to market changes, and understanding of broader market impacts on trading strategies.
Mid Level Questions
Q: How do you determine appropriate bid-ask spreads?
Expected Answer: Should explain how market volatility, trading volume, and competition influence pricing decisions, showing practical experience in day-to-day trading.
Q: What factors do you consider when managing your trading inventory?
Expected Answer: Should discuss balancing customer demand, market conditions, and risk limits while maintaining profitable positions.
Junior Level Questions
Q: What's the difference between bid and ask prices?
Expected Answer: Should explain that bid is the buying price and ask is the selling price, and how the difference (spread) represents potential profit.
Q: How do you stay updated with market news and events?
Expected Answer: Should mention using financial news sources, market data terminals, and understanding how news affects trading decisions.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of market making principles
- Familiarity with trading platforms
- Basic risk management
- Understanding of precious metals markets
Mid (2-5 years)
- Independent trading decisions
- Client relationship management
- Advanced market analysis
- Position management
Senior (5+ years)
- Strategic trading leadership
- Complex risk management
- Team management
- Market strategy development
Red Flags to Watch For
- No understanding of basic market principles
- Poor mathematical skills
- Inability to handle stress
- Lack of attention to detail
- No knowledge of compliance and regulations
Related Terms
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