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Thursday, 03/13/2014 7:11:38 PM

Thursday, March 13, 2014 7:11:38 PM

Post# of 9091
MM = Market Makers

"Everybody that is new to trading sees or hears in a chat or discussion thread about MM's and how they are killing or holding a stock from running etc. Anybody that has spent time in front of a screen with Level 2 trading viewing sees the names of the MM's and is familiar with most of the names. Well, market makers are supposed to facilitate a smooth flow of trading for us traders so that when we want to buy Stock XYZ-they supply us the shares and make the trade happen so we don't have to wait for Joe Schmoe to show up and decide to sell his shares to us. These MM's for short, make their money on the fractional difference per share that we pay and the seller gets or vice versa. They are licensed to do this and for the most part are honest in their efforts."

Source: http://www.stockmarketcats.com/showthread.php?t=4206