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How Does “Win Rate” on an RFQ Platform Relate to a Market Maker’s Pricing Strategy?

A market maker's "win rate" is the percentage of RFQ requests they quote on that result in a trade execution. A very high win rate might indicate their quotes are too aggressive (too tight), potentially leaving profit on the table.

Conversely, a very low win rate suggests their quotes are too wide (not competitive), leading to missed opportunities. The win rate is a key performance indicator used to calibrate the market maker's pricing spread and risk appetite.

They aim for an optimal win rate that balances trade volume and profitability.

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