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Art Vandeley

08/15/13 12:13 PM

#134200 RE: Michael_Park #134194

Market makers can hide their order sizes by placing small orders and updating them whenever they get a fill. They do this in order to unload or pick up a large order without tipping off other traders and scaring them away. After all, nobody is going to attempt to push through a 500,000 share resistance, but if a persistent 10,000 share resistance is there, traders may still think it is a beatable barrier.
Market makers also occasionally try to deceive other traders using their order sizes and timing. For example, JPHQ may place a large offer to get short sellers on board, only to pull the order and place a large bid. This will force the new shorts to cover as day traders react to the large bid.
Market makers can also hide their actions by trading through ECNs. Remember, ECNs can be used by anyone, so it is often difficult to tell whether large ECN orders are retail or institutional.



http://www.investopedia.com/articles/trading/06/level2quotes.asp
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Hacktheripper

08/15/13 12:18 PM

#134205 RE: Michael_Park #134194

i agree with your statement, I must have not phrased my question clearly.