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Think or Swim

03/01/13 3:10 PM

#52936 RE: FatFox #52931

Stocks go up and down based upon Supply and Demand. Throw out the MM manipulation, shorty, etc... It is S&D that drives a security.

Demand up = Supply down = price up
Demand down = Supply up = price down

Now, on the simple fact that I stated above, what do you think?

Think or Swim

03/01/13 3:14 PM

#52938 RE: FatFox #52931

All securities, on all exchanges, go through corrections. These corrections are much more drastic on the OTC markets. The reason for this is very simple.

MM's do not carry inventory. They do not want to. To much risk to carry long or short positions on their books. They simply execute orders, which means that liquidity declines on this market due to the level of MM participation.