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Re: MrSmith18 post# 66462

Wednesday, 08/09/2023 11:22:25 AM

Wednesday, August 09, 2023 11:22:25 AM

Post# of 71176
So please stop!

It amazes me how people here try so hard to twist the facts to promote some obscure spin of their own.

In the OTC the MM's trade over 2 trillion shares annually. A few billion is a big fat nothing burger.

Market Makers: Definition & How They Make Money

Taking on Inventory
The other big way market makers earn money is through taking on inventory. When there is a supply or demand imbalance in a stock, market makers will often accumulate a large position in an equity. When there is panic selling following a negative news announcement, for example, market makers are often the people buying as the crowd rushes to get out of the stock. Once things calm down, the market maker can slowly unload the inventory at more favorable prices, earning a profit for their willingness to absorb the risk during the panic selling.

Note: Market making is not simply a form of arbitrage. Market makers take considerable risk by being willing to buy and sell in volatile market conditions. Sometimes, if a company's stock plunges and then continues to decline, for example, market makers can suffer outsized losses holding inventory of a rapidly falling equity.

https://seekingalpha.com/article/4517979-what-are-market-makers

Total Annual OTC trades 2,297,852,599,395 (YES 2 trillion.)

https://otce.finra.org/otce/marketStatistics

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Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y