eCare Solutions Inc (ECSL)

[dshade]

Re: earlier MM question.

Market maker algorithms may have access to information about pending trades before they are executed. This means that they may be able to "front-run" trades by buying or selling ahead of the trader, which can push the price against the trader's position.

Market makers can manipulate the bid-ask spread, which is the difference between the highest price a buyer is willing to pay for a security and the lowest price a seller is willing to accept. They may widen the spread to take advantage of traders who want to buy or sell quickly, or narrow the spread to attract traders who want to execute trades at a particular price.

Market makers may use their knowledge of pending orders to redirect order flow to other exchanges or trading venues where they can profit from the order execution.