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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Mark Davis who wrote (4650)10/4/1999 5:01:00 PM
From: E. Davies  Read Replies (1) | Respond to 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



To: Mark Davis who wrote (4650)10/4/1999 6:23:00 PM
From: KM  Respond to of 18137
 
I thought about that on the day NSOL dropped 43 points in less than 90 minutes. Who had to eat those shares. That happened in the spring and it hasn't been within shouting distance of that price since. It traded on high volume too and about 3/8 tiers all the way down, albeit only a few hundred at each.


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