Tag: adverse selection

'Cover artwork (cover.png) for the article titled A Small Edge, Carefully Kept - and How It Connects to "Trading Big Bags".'

A Small Edge, Carefully Kept — and How It Connects to “Trading Big Bags”

Back when BitMEX paid maker rebates, I turned ~$30 into ~$2,000 by posting passive liquidity and guarding inventory. This post breaks down the rebate math, spread capture, and kill-switches—and shows how that small-edge discipline connects to “Trading Big Bags,” where structure, not bravado, determines survival.

6 min read
Cover artwork (cover.png) for the article titled The Hidden Hand of the Market: Understanding Market Makers and Inventory Risk.

The Hidden Hand of the Market: Understanding Market Makers and Inventory Risk

Market makers are often described as neutral referees — silent guardians of liquidity. But neutrality is an illusion. This essay explores spreads, inventory balancing, OTC desks, adverse selection, and hedging to show how dealers shape price through vested interest. To see the hidden hand is the first step in no longer being led by it.

12 min read
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