Futures market making is a process that enables traders to make bets on the future price of a certain product. Market makers are financial firms that help manage risk and increase liquidity in the derivatives market. In order to be an approved market maker, a person or company must meet certain criteria. For example, they must be a member of the relevant exchange. They must also be subject to the appropriate net capital requirement. This is the amount of money they have to deposit with their broker or clearing organization.
