Profit sharing aligns incentives by rewarding disciplined trading rather than directional speculation. When a market maker earns a percentage of trading profits, they are motivated to intelligently manage the Trading Capital Deposit — preserving its value while providing liquidity. Without profit sharing, the engagement risks devolving into a pure fee-for-service relationship with weak performance incentives. Profit sharing effectively turns the market maker into an asset manager with a vested interest in the deposit's growth.
Lesson 54 of 90
Why do profit-sharing mechanisms matter?
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