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To: Savant who wrote (2972)11/2/1998 5:50:00 PM
From: thomas gentry  Read Replies (2) of 4201
 
"They were buying it for 23.00 and crossing it for 23.50 ..."

What you describe is simple scalping, and of course that is the bread and butter of floor traders.

What I am describing seems to be a form of "stealth trading" which would allow market makers to build substantial long or short positions without notifying average retail traders that an accumulation program was underway. Especially for lightly traded equities, the ability to build large positions without moving the bid/ask spread would seem to give market makers a distinct advantage.

Any thoughts on this?

Thomas
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