Comment by xen0
I highly doubt market makers are in the business of betting against retail traders.
I suspect they're in the business of collecting the spread on lots of small trades that they can assume are largely random.
I highly doubt market makers are in the business of betting against retail traders.
I suspect they're in the business of collecting the spread on lots of small trades that they can assume are largely random.
What you described is how you bet against retail traders. The bet is that they have no edge so it’s safe to run tight spreads and nice pure market making algos that assume random behavior at volume.