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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Mama Bear who wrote (8264)5/4/1998 4:04:00 PM
From: BelowTheCrowd   of 18691
 
> Actually the market maker buys from you (1000) and sells to him (2000), and then buys from him (3000) and sells to you (4000). And it counts like that every time it swaps back and forth. <

That's not counting trades between the various market makers which they use to adjust inventory between themselves.

The volume on the Naz can be 3-4 times higher than the actual number of shares which have changed hands by the end of the day. On high-volume and high-volatility issues it can easily be more than that. Much of the trading is just "noise."

mg

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