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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: funk who wrote (1879)	12/14/1997 9:32:00 PM
From: David Smith	Read Replies (3) \| Respond to of 12617

Funk, my job entails making a market in 30 nasdaq stocks. This is the list that I trade every day. Some of the stocks are extremely actively traded, while others trade only a few thousand shares a day. Most of my job is executing customer orders. Example: a $10 billion mutual fund will call, wanting to buy 50,000 shares of a stock I trade. My job is to buy those shares from other MM's, other customers, or the "street" (retailers offering small lots, such as soes traders or deep discount brokers). I will try to buy as many shares as cheaply and as quietly as possible. I will then figure out my average cost, then sell the block to the customer (in this case the mutual fund) at a slightly higher price....often the current ASK price in the market for the stock. The same principle applies when I get an order to sell stock from the customer...I will immediately begin selling/shorting the stock out of my own account. When I have sold/shorted the amount of shares the customer wants to sell, I buy the block from the customer at the BID price in the market for the stock, thus covering my short. I do this all day long, dealing with a number of customers like mutual funds you have all heard of and massive hedge funds. Hope this helps.