Optiver Amsterdam

WHAT WE DO

Trading is a decision making process where success is the result of preparation. Financial markets are full of participants with different wishes over time. When participants have a desire to trade, our market making activity can be profitable. Our preparation methods vary. It includes leaning on pricing models and understanding the limitations of those models, and extends into cross instrument understanding and beyond. It all allows us to take and profitably manage risks in our market making activity.

At a critical size, our market making activity grants us a unique view of the market structure and dynamics that allow for additional market taking activities to be profitable.

Decision making can be considered along two lines. On one, the time taken for a decision. While a pharmaceutical company will eventually spend hours, days or weeks making a decision on their next line of research, we will spend seconds or when prepared, a fraction of a second, making our decisions. The second line is the type of answer we reach. While some problems like 2+2 only have one answer, in trading, decision making moments stream out into a web of dynamic and interrelated answers. Being able to quickly solve a web of possible solutions and stay on top of the chain keeps us ahead and makes money. This combination of circumstances is rare and makes trading a job unlike many others.