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Strategies & Market Trends : SOES Trading -- Ignore unavailable to you. Want to Upgrade?

To: cp who wrote (1423)	4/20/1998 10:45:00 AM
From: Darren	Read Replies (4) \| Respond to of 1618

hey soes trading is perfectly legal and i do not begrudge anyone for making as much money as they can. but don't try to say it's helping the mkt. cp SOES trading definitely helps the market. It improves spreads and keeps MM's honest. If the spread in a stock is 1/2, I can buy 1/16th above the Bid and sell 1/16th below the Ask all day long for a 3/8th gain. The reason SOES trading has become harder is that most fast moving spreads are now 1/16th... And plenty of SOES traders sell short on a downtick by Bidding 1/16th above the Bid thereby creating an uptick...we can also sell short on ISLD on a downtick...

To: cp who wrote (1423)	4/20/1998 2:27:00 PM
From: shag007	Respond to of 1618

cp....read my post carefully. <<If everyone is selling and no one's buying,who's going to provide liquidity.>> What I'm saying is that if everyone,(everyone would be traders,investors,institutions etc.) is selling and no one's, (traders,investors, etc.) is buying then who,(who would be an mm)would buy to provide liquidity? <<Who's going to buy what your selling and what is the incentive for doing so.>> So there should be incentives for mm's to do this.They play an important role. Just keep their incentives down to a minimum. I think Nasdaq is doing a pretty good job trying to find a happy medium. I'm new at posting but the post was meant in general to the discussion between you and Darren and anyone else who might be interested. FDA