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Microcap & Penny Stocks : WINR-Secure Banking to Global Internet Gaming & E-Commerce
WINR 0.00010000.0%Nov 5 1:20 PM EST

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To: socrates who wrote (5882)8/11/1999 10:50:00 PM
From: Dave Gore  Read Replies (1) of 6545
 
OK, this gets a bit complicated.

Generally when volume is brisk the spread is pretty tight. However the MM's often manipulate a stock's volume or price by widening the spread.

If they want to tank a stock, they will often move down the bid and keep the ask high.

When you see 1.00/1.125 turn into .935/1.125 they are trying to get some to panic out at a lowball price. If they get that to happen they may go to .875/1.06, etc.

When they have all the stock they want and don't really want any more unless they can charge a lot or pick it up cheap, then they do what they did at the end of the day.

A wide spread dissuades trading.

However often times they will fill small orders like 500 shares in between the Bid and Ask.

There is much more to it, but that's a start.
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