Only the exchange or the counter party knows. Anyone else who tells you differently is blowing smoke. Could be another spec(s) working an offer, could be a market maker(s) working an offer, could be a combination of parties.
Who are the market makers?
- Thread starter farmerjohn1324
- Start date
Only the exchange or the counter party knows. Anyone else who tells you differently is blowing smoke. Could be another spec(s) working an offer, could be a market maker(s) working an offer, could be a combination of parties.
%%
WELL part of that move is synthetic or suspect is correct;
lower highs,in an up trending bull market is suspect 'cause its counter TREND. TSLA uptrending has looked fake all 2020+ since last OCT spike. to me. Based on fundamentals 191% debt , $40 million SEC fine, from fundamentals it is fake,, but if thy buy TSLA they could buy anything LOL ...........................................................................
,,
Last edited:
Here's what moved markets most today:
China is no longer considered a currency manipulator by the USA. S&P up 0.7%.
Thoughts: impossible to predict, that news event moved markets more than any technical indicators. Perhaps technicals can work in short-term, but they don't move things as much as news, data releases do.
China is no longer considered a currency manipulator by the USA. S&P up 0.7%.
Thoughts: impossible to predict, that news event moved markets more than any technical indicators. Perhaps technicals can work in short-term, but they don't move things as much as news, data releases do.
%%
I'm not a market maker, but I agree with that market maker ;
in a perfect world, price would not move.......... even after a dividend LOL.
Good earnings or bad earnings can + do move markets much .I've never seen any technicals I thought moved any market; I know many use a 200 day moving aVerage. Do I buy more if a 200 dma is still going up?? Sure But my ETfs seldom touch a 200dma; I glance @ mile markers on road, but i'm not driving off those. I do use a map + charts, never a PE ratio.
My plan forbids me to sell or buy on any news.
,,
Is it possible that you don't know what a market maker is?
It's quite a different matter than news or events or technicals.
It's quite a different matter than news or events or technicals.
I'd like a clarification on that.
In my mind, a "market maker" is one who provides liquidity to a market.
So for example, if CL 2026 in June has no volume because there is no bid or offer, you come in and offer, say, 1000 contracts on a price. Is that "making a market", because you are offering opportunities to everyone else?
How someone can be a "market maker" on the front month of something already liquid, like the ES, is difficult for me to fathom, because the market is already "made". The liquidity is there!
How am I doing on market-making 101 class?
Liquidity providers (Market Makers, MM's) in ES are trading the index basis. This is the real-time differential of the individual stock component bids and offers and the ES book (price ladder) on CME Globex.
This is also called the "Premium" or just "PREM"
https://www.cmegroup.com/education/...ndex-products/what-is-equity-index-basis.html
The index basis is the difference between the ES bid/offer and the cash bid/offer in the underlying stocks (both on listed exchanges and in dark pools).
To trade the basis requires near instantaneous execution on multiple exchanges. This requires High Frequency Trading (HFT) and the use of state-of-the-art technology, servers co-located to multiple exchanges and huge amounts of capital.
Related Topics
Program Trading, Index Arbitrage, The PREM, ES Fair Value
Resources (some of these are selling stuff so caveat emptor and I'm not endorsing any of it)
http://www.indexarb.com/
https://programtrading.com/faq.htm
---------------------
For the CBOT U.S. treasury market (ZF, ZN, ZB, UB) it is a lot more complicated.
Here's the CME link for the Treasuries Basis
https://www.cmegroup.com/education/...reasuries/the-basics-of-treasuries-basis.html
This stuff involves BrokerTec, Cheapest-to-Deliver (CTD) and On-the-Run (OTR) treasuries, Conversion Factors, and other data feeds based on the cash treasury market.
I don't really understand it yet.... @bone knows about this stuff!
As for CL, NG, RB, and the other ones......
I don't and probably won't ever understand the market making going on in energies. @bone probably knows this stuff better than anybody here.
No, just because you decide to bid to buy or offer to sell at some particular point because it suits your circumstances- even when you improve the price, doesn’t make you a legit market maker per se. You have to do it as your core strategy.
Under your hypothesis anyone who speculates is a MM.
Market makers never give up the bid/ask spread and that is what they do. They could care less about taking directional bets.
Under your hypothesis anyone who speculates is a MM.
Market makers never give up the bid/ask spread and that is what they do. They could care less about taking directional bets.
Last edited:
Yeah, all the big swinging dick prop traders, bank desk traders, and HF types are all trading some type of spread relationship
Why on Earth anybody thinks that a prop firm or bank desk takes flat price outright risk amazes me
Why on Earth anybody thinks that a prop firm or bank desk takes flat price outright risk amazes me
Liquidity providers (Market Makers, MM's) in ES are trading the index basis. This is the real-time differential of the individual stock component bids and offers and the ES book (price ladder) on CME Globex.
This is also called the "Premium" or just "PREM"
https://www.cmegroup.com/education/...ndex-products/what-is-equity-index-basis.html
The index basis is the difference between the ES bid/offer and the cash bid/offer in the underlying stocks (both on listed exchanges and in dark pools).
To trade the basis requires near instantaneous execution on multiple exchanges. This requires High Frequency Trading (HFT) and the use of state-of-the-art technology, servers co-located to multiple exchanges and huge amounts of capital.
Related Topics
Program Trading, Index Arbitrage, The PREM, ES Fair Value
Resources (some of these are selling stuff so caveat emptor and I'm not endorsing any of it)
http://www.indexarb.com/
https://programtrading.com/faq.htm
---------------------
For the CBOT U.S. treasury market (ZF, ZN, ZB, UB) it is a lot more complicated.
Here's the CME link for the Treasuries Basis
https://www.cmegroup.com/education/...reasuries/the-basics-of-treasuries-basis.html
This stuff involves BrokerTec, Cheapest-to-Deliver (CTD) and On-the-Run (OTR) treasuries, Conversion Factors, and other data feeds based on the cash treasury market.
I don't really understand it yet.... @bone knows about this stuff!
As for CL, NG, RB, and the other ones......
I don't and probably won't ever understand the market making going on in energies. @bone probably knows this stuff better than anybody here.