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KnowProphet

08/26/11 2:31 PM

#40423 RE: hi898 #40411

That is 100% wrong- not even close to who or what a Market Maker is....
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KnowProphet

08/26/11 2:35 PM

#40424 RE: hi898 #40411


A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn.[1] From a market microstructure theory standpoint, market makers are net sellers of an option to be adversely selected at a premium proportional to the trading range at which they are willing to provide liquidity.[2]

Read more here if you care to educate yourself:



http://www.google.com/url?q=http://en.wikipedia.org/wiki/Market_maker&sa=U&ei=6OZXTv3aOceHsAKd-YmsDA&ved=0CCEQFjAA&sig2=vyx-2SvCex4mYgumiA1XJQ&usg=AFQjCNHiQIhV8LJkbChORkJwWCtWisU5qg