Replies to post #74622 on Tesla Inc (TSLA)

[Moonlazer]

This is exactly why ever ticker has a market maker as well. Their primary responsibility is to ensure liquidity. They buy when no one else is buying in a crash and sell when no one else is selling in a rally. They assume the largest risk in the overall market, but stand to gain the most when it corrects. Much like the 08 crash, look up the news reports of market makers committing suicide. If anything I'm stating is false, please do stop me.

[boston745]

You answered, in part, why your original statement was a part truth and oversimplification due to market makers. MMs also short to hedge in a crashing market to mitigate those potential losses.

They buy when no one else is buying in a crash and sell when no one else is selling in a rally. They assume the largest risk in the overall market, but stand to gain the most when it corrects.