Replies to post #161919 on DD Support Board and Research Team

[tedpeele]

Maybe it was with an OTC stock. I don't remember now, but when the price on the ask immediately changes in response to an order I place without filling as one would expect that clearly is a computer. No way a human can react that fast. And if it is a computer I would think it is not retail.


I'm not clear on what you mean by this:

"Backing Away" is illegal. But I will 'splain. Trader published a quote and got caught, so did not "back away", you got a partial fill.

If 1000 is on the ask and I put in an order at the same price and only 100 shares are filled and the 1000 or maybe just 900 immediate goes to a higher price, then that sounds like backing away to me. BUT I have been told by my broker that MMs reserve the right to buy penny stocks before retail at any time, so it seems to me they might as well have the right to do anything before retail can act -- including changing their price in response to my order.

It's certainly manipulative in a way, but I can see a rationale for it being legal, as they aren't making me do anything I don't want to do.