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Non-Tech : Market Makers - What They Do and How They Do It

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To: jjs_ynot who wrote (2)1/17/1999 6:34:00 PM
From: AlienTech  Read Replies (2) of 429
 
>>Discussions of a Market Maker:<<

This i spure poppy cock!

What really happened was, In the good old days, like last year, They saw people comming to buy large amounts of stock. Figured heck they have 10 days or so to cover it, So lets just short it all the way up and just ride it back down. Problem was, With things like the major internet stocks, it just did not come down. Their greed with the other shorts always created a floor which was much higher than normal.

>>Just like investors, MM Hate to take a loss.<<

Yea well, thats what making a market and providing liquidity means. You get to make the big bucks, But you also need to put in money and quite a few times take a loss. If they dont want to do that I say get the hell out. We have enough ECN's right now to make all of them obselete. Just route ALL orders through an ECN, Some of the volatility I have seen shows they really dont provide for anything other than a useless way for the average person to pay extra to get his stock.
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