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Re: asdfu099 post# 17

Friday, 11/15/2013 6:56:24 AM

Friday, November 15, 2013 6:56:24 AM

Post# of 42
Perhaps another way to look at is that market makers are simply in the business of making money on the spread and commissions on trade flow- they are not in business of speculating in stocks though of course sometimes they do. But every position they take for their own account reduces their net working capital that sets the trading volume they can handle per day. Thus generally the thrust of market making is not acquiring a position to earn proceeds from trades going beyond that day or three days.

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