SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Take the Money and Run
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jorj X Mckie who wrote (1722)6/4/2002 12:48:45 PM
From: GraceZ  Read Replies (2) of 17639
 
Someone has to take the other side of a trade, there are buy sell imbalances. A hundred share market order to sell will not sit there if there are no market orders to buy. First the MM will try to match it to the book. If the book is too far below they have to put up a bid if they are the primary MM. To not do so would be backing away.

For the most part the MMs try not to carry any inventory. If they wind up net long or short at the end of the day they'll blow out the position but only if they don't have to take a bath. For the most part this being forced to take the other side almost always works out in the MMs favor because they wind up taking the other side of the price extremes. When you reach a sold out extreme, price reverses and they can sell those shares they accumulated higher (to short sellers and bottom fishers undoubtedly).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News