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Re: MrWonderful post# 48111

Sunday, 08/11/2013 3:12:23 PM

Sunday, August 11, 2013 3:12:23 PM

Post# of 56916
I bought DHSM at 12:00 on Friday 2,800,000 @.0008 on the ask. At 1:00 exactly 2,800,000 was dumped into the bid @.0008.

Now there's an excellent illustration of how MMs cover throughout the day. Let's say an MM sold you 2.8 million shares at 0.0008. He didn't have the stock in hand at the moment, so he shorted to fill your order. Then an hour later, someone sold to him at 0.0008, and he covered.

Perhaps the second trade was a partial fill. In any case, he didn't make any money on the two transactions. But he would have if your buy had been executed at, say, 0.0009.

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