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jeff1981

02/11/13 8:06 AM

#13616 RE: r00kie #13588

I hear this all of the time, but I thought the MMs were simply brokers putting in orders and it was all automated? If this is the case, they are in a sense skimming from those trading? I am confused by this idea..
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NASCOW

02/11/13 10:29 AM

#13625 RE: r00kie #13588

N00bs are the only ones who think that MMs are out to get them and hold stocks down. Experienced traders actually know how they work. MMs make money on the spread, they very rarely ever hold shares long, and don't care what price they buy or sell at…I am sure most here use a Big Big broker like Etrade or TDA, where all you do is put in an order and hit submit and it magically shows up in the market at the price picked.

"Prop Traders" enter manual routes, select market makers,hide shares. When people see down ticking, bid up ticking, etc, that is simply someone with access to a direct route trading account that allows people to select the MMs they want and what ever price points they want

Market maker manipulation is very real, but its done by traders not the market makers. Market makers are simply automated computers that are there to add liquidity to the market by buying and selling peoples shares. They don't have some "agenda" where they are trying to knock down the pps or raise it up. They don't trade the same way human traders trade.