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Re: weske post# 13110

Friday, 09/29/2006 8:31:24 PM

Friday, September 29, 2006 8:31:24 PM

Post# of 38584
weske, I think you got it all wrong. When vol. is relativly low the MMs will ONLY allow you to sell within .0005 of the Bid and buy shares within .0005 of the Ask if even at that. There can always be exceptions of course, but that's the way irt is as a rule. Or at the Bid & Ask only. It doesn't matter what anyone offers in between whether its to buy or sell they don't allow it. And they probably won't change the Bid & Ask because of the inbetweens either. If vol. picks up that changes and inbetweens might get picked up. There is no retail investor buying at .006 and selling at .009. Maybe the other way around if the person is stupid or really needs the money. And (I don't believe I'm defending MMs)they do it to keep the Bid & Ask from being manipulated by investors.

For instance. Put in a number of small buys & the ask & bid are raised then BOOM sell a large chunk of shares (maybe bought the day before)at the new higher Bid and make some bucks.