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As part of the MM process, they technically

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surfkast Member Level  Tuesday, 05/05/20 12:32:58 PM
Re: ejobkar post# 46846
Post # of 46971 
As part of the MM process, they technically short stocks daily. But that is misleading if one does not understand the concept. Market makers make their money between the bid/ask.

The following link shows how many shares a MM trades on an average day.
Shorting would be ridiculous as they are making millions daily. To actually short an OTC stock would run the risk of SEC violations and they would still have to follow the $2.50 rule. Not too smart.


Using GYST as an example, most days the spread is roughly .002 and the volume is paltry on most days. But let's take one of the rare days when this traded almost 4 million shares and the high/low was a .0025 spread.
If one were to catch the perfect timing the most one could make is $10,000. Now looking at the broker/dealer data one sees on many days 10's of millions of dollars is traded by the brokers. Again, to short a stock and take risks for $10,000?


https://www.otcmarkets.com/market-activity/broker-dealer-data


The following is straight from OTC Markets.

https://blog.otcmarkets.com/2018/11/13/understanding-short-sale-activity/

Also here is another good read.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=80871478

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