medium · Volume Price Analysis
A market maker quotes a bid of $104.20 and an ask of $104.35.
If they execute 100,000 shares on each side of the book, what is the gross profit from spread capture, and what is the primary risk being managed?
- Gross profit of $15,000 while managing commission risk
- Gross profit of $1,500 while managing slippage risk
- Gross profit of $15,000 while managing inventory risk
- Gross profit of $150,000 while managing directional risk
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