medium · Market Microstructure spread-econ
Which of the following scenarios would result in a negative realized spread for a market maker?
- The market maker buys at the bid and sells at the ask with no midpoint movement.
- The market maker earns a rebate in a maker-taker exchange model.
- The market maker sells to an informed buyer, and the price rises immediately after.
- The market maker provides price improvement to a retail customer.
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