Here is some info on MM's if some people get confused on who is who and what some are used for....Enjoy all!
There are 4 categories of Market Makers let's talking about the first one.
(1) Retail Market Makers:
These are the market makers from very popular brokerage firms. They handle a lot of the order flow for small retail investors. NITE: NITE Securities UBSS: Schwab **SBSH/AUTO: Smith Barney ETMM: ETRADE **AUTO is being used by Penson Brokers as an alternative to SBSH. if SBSH does not want the order flow or does not make a market in the stock he sends it to AUTO.
(2) Market Makers that sell for Promoters: The rules have changed in the last 3 years because of Direct Access Brokers popping up all over the place. Anyone can open an account that has 10-20 market makers at there finger tips and if you know what your doing you can disguise your selling of shares and not make it look obvious when your doing it. Before you could identify a Market Maker and say hes the paper guy, that does not hold true any more. The problem you have these days is a promo guy can be selling his shares through ETMM,NITE,UBSS,SBSH/AUTO and you can say its retail when in fact its the promo guys selling. The only logical way to see if the paper guys selling is watching level 2 and see who's just camping out on the ASK SIDE of LV2. There are some market makers that show up once in a while that stick out above the crowd other than retail makers makers, lets touch on a few of them. VERT: HDSN: DOMS: SALI: LFCM SSGI: BMAS: PUMA: VFIN: JLEO: NOBL: PERT: ABLE: I might have left off a few extra ones but you get the point, all the market makers mention in the above list are sellers most of the time when there active. They are light sellers most of the time because if they hang around to long they will stick out like a sore thumb when they are on the ask side of LV2. Its always a bonus to have these market makers on the left side of the LV2 screen supporting a stock .
(3) Direct Access Window Dressing: Penny stock trading has really changed in the last 3 years with all the Direct Access Brokers flooding the market. Traders have more tools at there disposal to make things happen. Keep in mind the more routes or market makers you have at your disposal you can get better fills when your trading. But traders and promoters started getting creative when it comes to moving a stock. I call it the window dressing. Stacking the left side of the box on level 2. It happens all the time when someone is moving a stock up they will throw up multiple market makers at one time to try and force the action. Lets Look at some of the Market Makers that are used as window dressing most of the time: VFIN: SALI: MURF: DOMS: AUTO: VERT: HDSN: LABS: VNDM: BMAS: MAXM: WDCO: LAMP: FANC: VERT: You can access these market makers and trade with them through a few Direct Access Brokers . If your not looking to manipulate a stock and you use the market makers correctly, you will have a better chance of getting great executions on your trades - Direct Access has its advantages.
(4) ECN MARKET MAKERS : Electronic Routes these market makers are only used on OTC BB stocks. They do not work for pink sheet market. ARCA: This is the only electronic route available. There are extra charges when you use this route.
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