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Re: J.R. post# 30227

Tuesday, 10/12/2010 12:11:41 AM

Tuesday, October 12, 2010 12:11:41 AM

Post# of 93372
From what I understand, its the MMs who sell and buy shares from the investors. They obtain the shares from the company at a certain price and put their own mark-up on it so they can get a profit. The price might be .0022 but the MMs are going to require .0023 (the ask) for buy orders to complete quickly. They might wait a little bit if the buy order is lower.
In level 2 charts you see the MMs have various positions staked out for (ask) prices because they have so many shares available to sell at that ask price. When one MM runs out of shares for that price the next MM steps up to be at the front of the line. So if as an MM, one can fill a buy order at .0022 and then fill a sell order at .002. That means the MM made .0002 profit on each share sold.
When he runs out of .0020-.0021 shares to offer at an ask under .0022, he gives up his position to the next MM in line. He may now have shares that were obtained at .0030, and he would have to wait till the ask is in the range of .0031 before he gets close to having another chance to "assist" investors. So there isn't a clear someone sold in order for someone to buy. To me its more like who will offer a higher buying price to make it worth it to the MMs.

With the math, it really doesn't matter, the point of that post was to show the strong buying position, and the seeming fragility of the short/selling position. If everyone stays for the next couple weeks after the DIVI, the MMs will have to do some major buying to cover their positions, and then only after that would one want to exit.

All in my opinion and perception

Best to all.