InvestorsHub Logo
Followers 235
Posts 5668
Boards Moderated 3
Alias Born 04/30/2017

Re: splintered sunlight post# 12025

Friday, 01/08/2021 9:59:46 AM

Friday, January 08, 2021 9:59:46 AM

Post# of 13896
Someone sells you something at a dollar lets say for math purposes, okay so a market maker sells you a stock at 1.00 on Monday. They have until Wednesday to settle the sale.

When a market maker sells you a share for a dollar they can do it on borrowed volume or swapped shares from another MM that they may have as available shares. So they can sell you a share on Monday for a dollar but have until Wednesday to settle - that gives them a healthy 2-3 day window to then get shares at lower a dollar. If a MM can get a share from retail trader (if a retail trader sells on bid) they create the bid - so in practice 2-3 MM can create a lower bid and someone sells on it at .80 cents bid to the 1.00 ask then the Market maker sold you a .80 share to your 1.00 order a few days ago.

This happens all the time especially on unsolicited tickers or tickers yet to be fully cleaned up.