⁠Greed Makes Markets: Market Making From First Principles With an HFT Quant

Podcast: Odds on Open · Ethan Kho

Opublikowano: 2026-09-03

How does market making actually work? In this lecture, former high-frequency trader Annanay Kapila (Flow Traders, Tower Research Capital; founder & CEO of QFEX) breaks down the mechanics of market making from first principles. He maps the systematic trading landscape—prop trading vs hedge funds, HFT vs mid-frequency—and explains why market making sits in the high-Sharpe, proprietary quadrant. You'll learn how a central limit order book (CLOB) works, how arbitrage-free pricing pins down fair value (theo), and why the mid-price between best bid and best ask is the market's best estimate of a stock's true price.From there, the lect...