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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Mark Davis who wrote (4650)10/4/1999 5:01:00 PM
From: E. Davies  Read Replies (1) of 18137
 
If a stock is about to go from 50 to 25, without a halt, who do you think is gonna eat the shares on the way down

Two things:
1) usually the MM's were shorting as it ran from 25 to 50.
2) They only have to buy 100 shares every 15 seconds (or whatever), then drop the bid again. Not exactly a major expense.

Nevertheless I agree that it is not an easy task to have to stay in the market at all times. Sometimes a MM gets burned very badly. Overall though I think they have some pretty substantial advantages.
Eric
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