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Does a High Fill Rate Always Guarantee Maximum Profitability for a Market Maker?

No, a high fill rate does not guarantee maximum profitability. A market maker could be consistently offering quotes that are too aggressive, leading to high execution volume but with insufficient edge or premium to cover inventory risk, hedging costs, and operational expenses.

Profitability depends on the spread captured, the volume, and effective risk management, not just the fill rate alone.

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