A sell price is meaningful only when someone has committed the money to buy the stated quantity.
A is the customer buy quote, B is the customer sell quote, d is the selected 14% discount, and R is unencumbered funds committed to purchases. Qmax is the maximum purchasable quantity before fees and other costs.
The 14% discount is a proposed quoting rule. It is not evidence that a buyer exists at that price, and it is not the desk’s net profit margin.
Illustration at the worked example: US$10 launch asking price, 20× annual multiple, network work flat, 14% sell discount, 10,000 QTC offered.
| Illustrative offer | Quantity | Funds required |
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Disclose price, available quantity, expiry, fees and settlement terms for each executable quote. Reconcile buying capital to custody and other obligations. Customer balances owed back to customers are not the market maker’s available capital.