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Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1166)	10/2/2000 7:29:42 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

If you have used SI streaming realtime portfolio display or a similar one at NDB; and wondered how the market makers do their instantaneous move in their offers? Most of the time, they just print(same) offers over and over again. But first we have to understand these offers are the last trade and offered by the last market maker. So, changes could be wild as far as the size of the offer goes, if market makers do alternate trades. Most market makers print their offers because they handle 16-25 stocks and it takes time to key in the move(change). Also, they may not have cash pool ready to move the offers. However, should the size of the offers change from larger ask size to larger bid size or the other way around; that market maker may have a middleware(software that automatically moves the offers), which balances his inventory. And if it appears he is the lead market maker. We are in luck, that this stock you are watching; the market maker has inventory. When market maker has inventory, he has to defend the cost of his inventory; he will have a nice move when and if he has an opportunity. I love to invest with the market maker, myself; if he thinks the stock is worth owning. I can sleep better everyday.