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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (2675)	3/9/1998 10:05:00 PM
From: Scott	Read Replies (2) \| Respond to of 4969

Question about Stop orders. It is said frequently in the trading chatrooms that the MMs are picking off stops before moving in the opposite direction. This reminds me of those drivers who swing left before making a right turn. Can the MMs really see Stop orders that have been placed with brokers? I though that Stops stay inside the brokerage until a trade happens at the stop price (or perhaps when the bid or ask reach the stop price), at which time they become real limit or market orders. Do the MMs blindly drop their bids or raise their asks to catch some stops before making their real moves? Wouldn't a number of MMs have to cooperate to move the price more than 1/8 or so in either direction in the absence of real trades that would take out the inside MMs? Scott