InvestorsHub Logo
Followers 132
Posts 6427
Boards Moderated 0
Alias Born 05/13/2014

Re: nelskof post# 25380

Wednesday, 10/07/2020 11:07:15 AM

Wednesday, October 07, 2020 11:07:15 AM

Post# of 44690
Yessir.... they have more tools in the toolbox than we do. Even with Level 2, we are kidding ourselves... They can trade to the fifth decimal and just as you say, make $$ on spreads.

Especially easy to notice on a rather “dormant” stock, I can place an order and you might see an added 200-2000 shares on your (Level2) market depth.... HMM? ... pull the order, and so does the MM. In my experience, I see this.... They notice interest, add a few shares, just a tiny amount sometimes, scoop some when your order is filled, and sell them a few ticks up if some volume comes in, or if the spread is thick and they can slide a “hidden” order in there...

Anyway... bla bla bla... lol!

Lots and lots of info on MMs and their function but yeah they make cash in small increments while Making a Market !!!

$RLFTF