You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
market makers
- Thread starter samuritrader
- Start date
Quote from stock777:
Do you forget than anything can be traded. No one cares what the co does, least of all the MM's. It's just a Ponzi scheme, get over it.
It's the factor of REAL investor buyers & sellers, smth IPIX, TASR and other hedge fund play stocks simply do not have.
samuritrader, I hear ya. Good luck in your trading.
Quote from samuritrader:
I've asked this question many times and haven't got an answer
maybe somebody can shead some light on this for me.
I'm wondering if at a market making firm, does one guy trade the same stock all day long, everyday?
say at BRUT,CINN, or whereever, is one guy sitting at a computer and trading the same stock?
I have been trading IPIX in and out for about a month or more and the other day it trade over 50 million shares and was moving pretty quick, I can't imagine that the guy working for CINN< BRUT or any other mm could have kept their eye on any other stock
I also hear about the AXE, just wondering if he changes depending on orders or is the AXE the same everyday depending on the stock?
I'm asking mostly for nasdaq stocks
Thanks
THIS IS WHAT i WAS ASKING
AT LEAST AT SWIFT THEY TRADE THE SAME STOCK EVERYDAY, OVER AND OVER AGAIN
So, what exactly is proprietary trading?
Simply put, SwiftTrade's Prop Traders are employed to trade a company's capital on the stock market. Traders are equipped with state-of-the-art computers and software that allows them direct access to the markets via a number of Electronic Communications Networks, or ECN's. Traders will generally buy and sell one security (stock), making lightening fast decisions in a matter of seconds to capture the "spread" or the difference between asking price and the bidding price of that security.
How does it work?
Each Trader is connected to a Market (NASDAQ, NYSE, etc.), and trades a single stock. Traders have three basic resources on hand to make lightening-fast buy and sell decisions:
The Level II Window: This window shows the size and value of all the bids and offers (in left and right columns, respectively) on a particular stock, top-down from highest to lowest. This allows traders to see what every other trader is bidding, or offering. When a trader puts in a bid or offer, it will appear on this screen. Watching a Level II screen on an active stock is spectacular, with buys and sells happening in less than seconds.
Charting: The charting window shows the progressive ups and downs of a stock's price, as well as the volume (number of shares) traded. By watching charts, traders can pick up on patterns than aid in making buy or sell decisions.
The "Squawk Box": This is essentially a PA system that connects the trading floor to an actual person, standing on the floor at the Chicago Mercantile Exchange, where Futures (contracts to buy stocks in the future) are traded. By listening to what other traders are betting on in the long term, stock traders can get a better idea of what the price of the underlying stock will do in the immediate future.
Sound crazy? It is. It is quite possibly the most exciting job around.
How often does a trader "trade"?
Traders average around 250 transactions, representing 250-500,000 shares in a single day. Some of the company's top traders will move upwards of two to three million!
How are traders paid?
Traders earn a percentage of the overall net profit they make in any given month, and the more profit they make, the larger percentage of it they take home.
How much do traders make?
This is directly correlated with how good the trader is. Top traders will net upwards of US$20,000 - US$50,000 monthly. The average is between $US8,000 - $US15,000.
What qualifications do I need to become a Prop Trader?
Traders are energetic, competitive, and driven by an insatiable need to succeed. A BA, MBA or other equivalent business school experience is a definite advantage. No related experience is necessary, however, as Swift Trade provides extensive training to all potential traders. We look for people who can handle an extremely fast-paced and highly pressurized environment with enthusiasm and flare.
How can I apply?
SwiftTrade seriously considers every resume that crosses our desks. Please visit the Employment, and Working at SwifTrade sections of this website for more information.
Quote from MACD_addy:
Dude you need to take Turok's advice and get some basic education about direct access trading. there are huge differences between MMs and ECNs and some basic education would obviously clear up a lot of you questions.
Can anyone suggest books or websites that will teach me about direct access trading? I have been a retail swing trader for about 2.5 years and have just really gained momentum (profits and volume) in the past 4 months as a PDT. I have spent some time with a pink sheet market maker, but he doesn't offer much advice about Nasdaq or Listed, which is what I trade.
Thanks!