Who really does provide the most liquidity?

Hello:
Htrader has it mostly correct. There are institutional groups who develop a business rep for moving volume. They respond to "interest messages" from other institutions hoping to move volume in blocks without moving the market. Rather than get into the logistics, lets just say that it is a specialty that some groups participate in.

Igor:

These groups do not simply cross volume, they are looking to move volume based the information that is "built in" to the transaction. If you take a moment to look into the subject (read about Knight trading for example) you will find that this specialty area can be quite profitable.

As for the question posed by the thread originator. It should be obvious, that the parties that provide liquidity are those that have it to begin with (in order they are institutions like banks, brokerages, trading pools, Market Makers. Off-floor speculators, locals, and retail paper).


Steve
 
Hey Guys,
Please wise up and change the subject, it's not a good idea to talk about somethings, and this is one of them. Anyone who has run their mouth should do a new post and say you were just kidding. Shooting off your mouth on a message board is a good way to have cars with dark windows following you and your family. Whoever is running this site should delete this thread before someone gets thrown out of a helicopter.

Anonymous
 
Quote from billybobnasdaq:

How's everybody doing. I trade on the nasdaq. This question has plagued me for the longest time, and I was wondering if any of you had any insight on the matter. Alot of stocks do some serious volume on the nasdaq every single day, but alot of the volume is fictitious. A few examples... JDSU, SIRI, SUNW, ADCT... Every now and then, a volume surge kicks in, and the stock proceeds to clear the bid/offer repeatedly, at the same price level, usually for a very short period of time. Prior to size becoming anonymous, one could see the same MMID smacking both the bid, and then the newly created offer. I've formulated a theory that they do this to catch a trader in an unfavorable position, but, what else could it be for? Do Market Makers get credited for generating these high volumes even if the stock isn't going anywhere? Does this kind of behavior happen on the NYSE, or is it restricted to the nasdaq? Some rebate traders profit tremendously from these discrepencies, and I assume someone has to pay out some fees somewhere down the line. So why do it? Is the reward for generating higher volume worth losing tens of thousands of dollars in ECN fees? Let me know what you guys think.
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Market makers do a lot of volume to attract large costumers. The big ticket traders want the MM that have access to most liquidity and can easly match orders! If you read "The Electronic Day trader" they explane this process very well. Great book if you have been trading for a while!
 
Quote from William Rennick:

Shooting off your mouth on a message board is a good way to have cars with dark windows following you and your family. Whoever is running this site should delete this thread before someone gets thrown out of a helicopter.
More...

Im not sure if you're kidding.

If you aren't, why would the money powers care?

Hasn't this been one of the ultimate endgames of the stock market all along - a thinly veiled arena for the super elite to fleece the unsuspecting public from their hard earned dollars?

Nothing new under the sun.

Just my opinion.
 
Quote from achilles28:

Im not sure if you're kidding.

If you aren't, why would the money powers care?

Hasn't this been one of the ultimate endgames of the stock market all along - a thinly veiled arena for the super elite to fleece the unsuspecting public from their hard earned dollars?

Nothing new under the sun.

Just my opinion.
More...

I have issued my warning about commenting further on this taboo topic. I write this from a secure untracable location that is being uplinked to a NSC Bird over the East coast. There are plenty of other topics that can be discussed here, wise up you guys.

...Anonymus
 
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