If a market maker posts a quote of 10.00 - 10.10 [25x10], what does this indicate about their intentions?

The posted quote of 10.00 - 10.10 [25x10] indicates the market maker's intention to engage in both buying and selling activities. The first number, 10.00, is the bid price, indicating that the market maker is willing to buy shares at this price. The number following the bid, 25, represents the volume they are willing to buy, which is 2,500 shares (25 times 100 shares, as 1 standard trading unit is typically 100 shares).

The second number, 10.10, is the ask price, showing that the market maker is willing to sell shares at this price. The number 10 after the ask represents the volume they are willing to sell, which is 1,000 shares at this ask price (10 times 100 shares).

Therefore, the quote translates to the market maker's readiness to buy up to 2,500 shares at $10.00 and sell up to 1,000 shares at $10.10. This dual nature of the quote reflects the market maker's role in providing liquidity and facilitating trading by allowing participants to buy and sell at specified prices.