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82716f12
·vor 11 Monaten·discuss
My understanding of these firms is limited too, but I’ve never heard of market makers charging transaction fees.

Isn’t it actually the opposite? they pay for order flow instead? They should be making money from bid-ask spread, not fees.
82716f12
·vor 11 Monaten·discuss
That sounds good in theory, but I haven’t come across a codebase that’s really optimized and free of unnecessary imports, especially in large companies.

And when you have to depend on external libraries beyond your control, how do you typically handle those situations?
82716f12
·vor 11 Monaten·discuss
Being a market maker vs "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could" are two very different things lol

Moreover, I would be very surprised if the majority of their $8 billion annual profit came from client market making.
82716f12
·vor 11 Monaten·discuss
> I agree, which is why you should design your modules correctly and import only the stuff you need.

How do you achieve this without making gazillions of modules, where each module has just a few stuff?

Are you saying just use local import everywhere?
82716f12
·vor 11 Monaten·discuss
HRT is a prop firm, which means they don't have outside investors. They invest their own money like you said, no income from fees. You just proved that you have no idea what you are talking about.
82716f12
·vor 11 Monaten·discuss
> "We have a fancy trading algorithm that statistically is never going to outperform just buying VOO and holding it, but the thing is if you get lucky, it could".

How they make $8B/y underperforming VOO?

Reference: https://www.businessinsider.com/hudson-river-trading-hrt-8-b...