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03/05/22 9:36 PM

#105190 RE: Natureboy1 #105188

As of December 31,2021 Citadel had 65.7 Billion reasons why there’s more to it than profiteering from a simple bid ask spread. And to think that’s just one company. They ALL do it.



Morgan Stanley had more.

Every market maker or financial services firm has this on their books - no matter how big or small the firm is.

I am guessing you don't know how it works when they talk about "investments sold but not yet purchased, at fair value."

Yes, they are short sales. And you think that there is some devious undertakings when all these market making firms report this on their books - like they are flaunting this to the world and no one can do anything about it? That's kind of silly isn't it?

In fact, there is ample evidence that short selling contributes to efficient price formation, enhances liquidity and facilitates risk management.

And yes, I believe this to be the case.

Not only that, but you are taking two different concepts - market making and short selling - and intertwining them.

Citadel, or any market maker for that matter, makes their money from making a market through trade execution.

It's a small part of their revenue.

This is what Citadel gets fined for. They manipulate the trade execution order flow or price.

Does that mean they "bring the stock down?" No.
Does that mean Citadel is bringing down RGBP? No.

The system fleeces billions from innocent shareholders that think it’s just solely about buying and selling based on fundamentals.



First, people who get fleeced are people who "trade" stocks. Not long term investors.

Second, most people who trade stocks don't have a clue how to do it. They lose their shirt and then say... "It's the market makers."

Third, and this is what most people forget, is that you are trading stocks and competing against MANY, MANY DIFFERENT ECONOMIC AGENTS.

Fourth, who is the the person that most traders should fear? The Quantitative Trader (algorithmic trader/high frequency trader).

The game is rigged.



It is to an extent.

The person who knows quantitative trading has more of an edge than a person who doesn't.

because the elites are making way too much money to ever change it.



Citadel has a 40% take in trade executions. There are plenty of other "smaller" market makers.

Why would they change how trade execution goes? It's a fundamental part of how the stock market functions. It will never be replaced because it is vital.

All the best.