Replies to post #61905 on Koil Energy Solutions Inc. (KLNG)

[sleektrader]

DR might not fill anybody at 5, but if you look at L2, all the MM's below $1.00 are primairly retail. The institutional MM's like WEED and DR are all above buck and a half....

I think this does mean something.

[nsomniyak]

nope--just saying they can set their system to honor the market orders that come in without risk or inventory carrying cost.

This happens to be DR vis-a-vis DPDW, but could be any MM vis-a-vis any stock they, however occasionally, make a market in.

If you are an MM on the electronic system you need a fail-safe for those times when you don't want to be actively putting time into a particular stock. Before and after market bid/ask behave the same way--they are set so that any order that comes in lights-out can be filled lights-out, without risk. If an order fills the MM can easily find the other side of the trade, at a profit, simply by hitting the inside b/a from the other MMs.

This is also why no one should pay any attention to the after-hours b/a, or pre-market b/a, on stocks like this. A wide b/a spread from a given MM means only that they don't want to pay attention to the stock as of 9:30 a.m Eastern. Maybe they want to come to work at 10 that day. maybe they know they want to pay attention to other stocks at the open. Setting their bid or ask well off-market allows them to be "live" but not at risk and not needing to pay attention.