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Optimistic Trader

10/20/14 10:29 AM

#22179 RE: goodinvestment #22178

Yes, it does make sense. Market makers can buy or sell small quantities of shares without paying commissions/fees. The small quantity usually is a signal to another market maker about the direction they want the stock to go. Market makers make their money on the spread (the spread between the bid and ask when a trade is executed). All of what I said is what I have learned, however, their could be some others out there that can trump what I've said. Bottom line, market makers really like spreading SFOR...that is why it can swing wildly in one day. The more she swings, the more they make.