RE: Power to move markets
I've seen the quote move to my bid or ask -- right before my bid or ask is hit. Of course, no public order broker has to take my offer to the pit, he can fill it himself for a teeny profit, so the offer will never appear in a quote, and he will take another order to the floor.
As to moving the market bid and ask, read the blurb on Day Trader's network, where they guarantee to make your bid the market bid. This is stock, of course, but the principle is the same. The honest market maker either fills or trades the public customer's bid.
"Stocks Very Often Trade At Prices In
Between the Market Makers Best Bid/Offer
Have you ever noticed how an OTC stock quoted $20bid -
$20 1/2ask can trade in volume at $ 20 1/8, 20 3/8, and 20
1/4. Incredibly, you can only sell at $20, or buy at $20
1/2, right?
We offer you direct access to the Instinet Market, and we
never markup a trade (We Quickly Change The Bid/Ask
To Reflect Your Order). If we can buy or sell your stock
at a price better than the bid or offer quoted by the
market makers is, we let you know. We are in there
trading those 1/8s and 1/4s for YOU."
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