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Non-Tech : Meet Gene, a NASDAQ Market Maker
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To: SteveDavis who wrote (523)8/13/2000 4:09:15 PM
From: Simon Thornington   of 1426
 
I'm no market maker, but it seems to me the overriding strategy (especially in an illiquid stock) would be to find the price where there are as many buyers as sellers, so one could make the spread without becoming net long or short. That guy who got filled on the bid might have been taking shares from a larger sell order that was being "worked" by one of the market makers, and should be pleased that he got a better price than he wanted.

I tried my hand at "manipulating" some thinly traded securities once, and it really did no good. (I wasn't going around pumping, just seeing what the effect of certain prints might be). The only thing I can imagine happening is market makers acting on more information than the public has (ie. a 200K sell order they have to distribute) and so aggressively moving the markets to the point where they can print it with less risk.

Just my 2c,

Simon.
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