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

To: LPS5 who wrote (7439)	3/15/2000 9:52:00 PM
From: WryBoy	Read Replies (1) \| Respond to of 18137

One thing I've wondered is whether or not MM's can cover their own positions ahead of an institutional order that hits their desk. Suppose, for example, an MM is not working an order, but just making a market. Suppose the market is rising and the MM is shorting into the rise, as they naturally do. Then they get a big buy order. Can they/do they cover their shorts ahead of the order? Isn't that frontrunning? Conversely, if the MM is already long the stock to some extent, must they use their current inventory toward fulfilling the order, or can they, if they chose to, buy it all from the market, leave their longs in place, and thereby profit from the order? WB