This means you must be putting a market order in.
Market Makers have Level 4. They can see all orders at a glance.
If they see that you have an order in for 200,000 at market price, and that many others have sells in, they will do this.
They will walk it down to get the sell orders filled. If once they have the sells filled they will walk it right back up and fill the buys.
If you have a market order in for 200,000 you run the risk of getting it filled at much higher prices.
You can bet many MM yesterday, were filling orders at 4.2 cents first thing in the morning, and they selling those at 5.6 cents later in the afternoon.
If you think about it from that point of view, then a 200,000 order costs then $8400 which they resold at $11,200.
Many people believe that if they don't put in a market order they will not get filled. MYTH
the only thing that makes the above scenario difficult is the sheer number of MM working this one. The numbers make it harder for them to play it out. This is the reason for the price volitility.
You can bet that if there were only 3 MM like in some stocks, they would have broght this down to under a penny and back up to 8 cents.
I have seen a stock with 3 MM do just that.
Rape the investors panicing and selling, Bring the stock from 55 cents to 28 cents in the morning, only to sell 4 million shares right back out from 40 cents to 55 cents where it closed.
I never use Market orders, not in the otc anyway.
If I put in an order for 200,000 a put a specific price E.G. 200,000 at .05 . My broker knows that he only gets a commission based on what he fills, so he is eager to fill the order, and since he can only fill it at .05, he can't accept anything else.
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