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To: Robert V. Cavaleri who wrote (11185)3/6/1999 2:50:00 PM
From: Mama Bear  Respond to of 16892
 
Robert, what you're missing is market risk. If you offer at the ask no one is required to buy your stock. If you try to buy at the bid, no one is required to sell to you. Since the spread is 1/16 on most stocks, it doesn't take much of a move against you to foul up the strategy. But if you're willing to take the market risk, yes, you can play market maker.

Barb



To: Robert V. Cavaleri who wrote (11185)3/6/1999 5:29:00 PM
From: Jon Tara  Respond to of 16892
 
Yup, you CAN sell at the ask, cover at the bid, and profit on the spread just like a Market Maker.

That doesn't mean that you WILL, though. :)