We have two trading business models for which we provide technology, analytical tools, support and training to traders. As part of our independent trading model each trader makes his/her own trading decisions within the context of the firm's risk rules. In our firm trading model we emphasize a team based trading approach integrating the technology and analytical processes closely with trading decision making.

As market makers (independent or team) we make money by capturing small mathematical advantages created by the bid/offer spread and/or by finding and exploiting subtle pricing inefficiencies. In general, when a market maker participates in a trade, he attempts to buy for prices below the level at which he/she values a security, and sell at prices higher than his/her value. In order to do this, we have models that help determine "fair value" in real time, and technology that allows continuous dissemination of bid and offer prices around "fair value."

Cutler Group does not have any clients. We are purely a proprietary trading firm. We provide brokers and their clients with prices at which we will buy and sell. In other words, we act as a principal rather than as an agent, in every trade with others. When a counter-party wants to buy an option, we offer a price at which we will sell it; when someone wants to sell, we give a price (a bid) at which we would buy it.