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To: marginnayan who wrote (141593)1/4/2002 2:04:57 PM
From: At_The_Ask  Read Replies (1) | Respond to of 436258
 
I don't really know the extent to which they trade between themselves either. Their function is to make a market for the general public. I doubt that prey on each other very much as that would cause wars between them and would be counterproductive. Whenever your daytrading the idea is to study the level 2 screen and determine who is the "ax". The ax is the big dog marketmaker for whatever particular issue your trading. They are the most active and usually are the ones that determine where the price of that stock will go. They may have been involed in the underwriting of the company or have another agenda such as buying or selling a large block without affecting the price.