In the previous chapters, we mainly dealt with optimal execution: the optimal execution of a large order to liquidate a portfolio, the optimal execution
of a hedging strategy, and the optimal execution strategy in the case of a
buy-back contract. Therefore, our focus was mainly on liquidity taking issues
– even though we also considered the use of liquidity-providing (limit) orders
to buy or sell shares, for instance when we dealt with tactics in Chapter 7. In
this chapter on market making, we focus instead on liquidity provision.
