Operating in the shadows?
I have for some reason assumed that MM's have an edge provided by some "agency or regulatory dispensation" to facilitate transactions.
What edge does an "Official MM" have that any trader walking around does not have?
Adequate Number of Market Makers
- Thread starter easymon1
- Start date
I have for some reason assumed that MM's have an edge provided by some "agency or regulatory dispensation" to facilitate transactions.
What edge does an "Official MM" have that any trader walking around does not have?
They make a market ie. 10@11. They will buy at 10 and sell at 11. Assume there is steady order flow and the stock just bounces between 10 and 11. They make 1 * total volume
%%
OF course they do.
For the same reason WMT, Ford pick up, Remington + Winchester dealers have in buying + selling. Even though i've bought all those products i knew my knowledge was more specialized than theirs. Not a stock tip.
Also interesting;
the IBD Accumulate-distribution letter grade A,b,d,c,d- i never could get those to line up with % gain for the year or year to date%.
Therefore i look @ EPS+ stuff i could prove /made a difference. Mainly in ETFs
I never saw a subjective ''cup with handle'' except in his books. LOL
But i still consider his IBD books among the best of the many decades.Why do you say "They". What's to stop "Everyman" from doing the same thing?
I have for some reason assumed that MM's have an edge provided by some "agency or regulatory dispensation" to facilitate transactions.
What edge does an "Official MM" have that any trader walking around does not have?
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Cup and Handle Trading Strategy
https://elitetrader.com/et/threads/cup-and-handle-on-bac.356343/#post-5336128
What edge does an "Official MM" have that any trader walking around does not have?
Can you be more specific as to the source and nature of the MM's Edge?
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It has been said that the elusive "cup with handle" has been spotted from time to time by intrepid traders worldwide.I never saw a subjective ''cup with handle'' except in his books. LOL
Cup and Handle Trading Strategy
https://elitetrader.com/et/threads/cup-and-handle-on-bac.356343/#post-5336128
everyman can do it in some futures. other asset types have designated market makers that are required to provide markets x% of the time for x% of qty. It is why there is payment for order flow; it's like a toll booth
Beyond having first-hand info re: order flow, including dark pool, block, and (some) matched trades, the major "edge" if you want to call it that, imo, is in accounting...
MMs can go long and/or short at will... all that matters is NET position! And while they mark-to-market with reporting in real-time, or at minimum at specific times throughout the trading day, a net position can be held indefinitely presuming MM capital is available to maintain.
Your next question might be what are the capital requirements?
IDK... but retailers are able to attain portfolio margin, therefore it is safe to presume, MMs have a better deal than that!!
Required by Who or by What Agency?
you have been registered since 2007 and you don't know how markets work?
https://www.google.com/search?q=market+maker+requirements
Relax have a homebrew, lol
You've flown off the handle and lost your path back to the original question there holmes, lol.
If you share your expertise and specifically, spell it out. "Required by Who or by What Agency?"
maybe you can grace us commoners with your answer leading back to a prior question of ...where a list just might reside...specifically..."is there an online source that the unwashed masses can view that ranks or at least discloses the number of market makers associated with stocks on NYSE/AMEX/NASDAQ?"