Our traders employ strategies and techniques developed over time and continually refine them in order to maintain a competitive market position.
WHAT WE DO
Trading is a decision-making process where success is the result of preparation and opportunity recognition. Financial markets are full of participants with different strategies. When market participants have a desire to trade, market making activity can be profitable. Our methods of implementing strategies vary. We depend on pricing models and a thorough understanding of the strengths and weaknesses of those models. We understand relationships between instruments and are able to incorporate that understanding into our models. Operating in this way enables us to take controlled risks, and profitably manage the resulting trading positions. Additionally, our market making activity gives us a unique view of the market structure and dynamics, which allows for additional market making activities to be profitable.
The decision-making process is affected by two important considerations. The first relates to the limited time during which decisions must be made. While a pharmaceutical company will eventually spend hours, days or weeks making a decision on their next line of research, due to dynamic markets in which we trade, decisions about trading must be made within seconds or, more likely, a fraction of a second.
The second consideration relates to the complexity of the analysis we must do and the answers 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 that web of possible solutions and still effectively manage the chain of events helps us to establish a competitive advantage. This combination of speed and complexity in problem solving is challenging and makes trading a job unlike any other.
WHAT MAKES US DIFFERENT
Optiver has established a competitive advantage in electronic screen-based trading markets. The long and continued devotion of effort and resources toward IT in collaboration with trading high frequency strategies has been and must continue to be employed with greater and greater efficiency now and into the future if we are to maintain our standing among competitors. It enables arbitrage activities to take place around market making and the development of efficient cross-product strategies.
Being profitable and successful in any given moment can be the result of any number of factors. Being continually profitable and successful over time depends on developing and growing people with talent and enthusiasm.