Risk Appetite of a market maker?

[jackytam]

So What should be the risk appetite for a market maker like?

I would say a good market maker should have good self-discipline(i assume it applied to all traders)

Should market maker be more risk averse? as you dont want to hold a large position to become a speculator...

Any more requirement to be a good market maker? i mean in personal quality.. like quick thinking and response..

I am going to an interview this week. So any comment would be much appreciated!!

 

[metals_trader]

risk appetite is very low, at the end of the day your job as a mm isnt to run positions trying to profit off your own proprietary trading, its to make markets off the bid and offer of products and once a position is on its near enough straight back out.

 

[gooseman]

you have to have appetite for risk otherwise you would make markets so wide nobody would trade on them .that said you have to make money form two things:

a) your fundamental position
b) the spread. i.e getting out of (reducing your risk) as quickly as possible for a profit.

being able to think quick and have a good memory are probably two of the more important skills. i don't think either can be taught