Question about market makers...
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Thread: Question about market makers...

  1. #1
    Alright so I have heard that the market makers will move the market to clear out peoples stops. I can see two reasons why they'd do this but I am not certain which one is the real reason. If a market makers clears out a lot of peoples' stops that are at a loss, does this market manufacturer get that cash? Or is the reason that they move the market to clear peoples' stops in order to receive their orders full? In other words, do they sometimes need to find the price up/down to people's stops in order to have someone who will fulfill their orders?

    I don't know, perhaps I am way off but some explanations are appreciated.

  2. #2
    Jim, You May Want to check out this thread...A lengthy discussion was there Relating to this Particular issue although the thread started as a Trading Gamblin discussion...

    https://www.forexforum.co.za/general...ount-size.html


    Thanks,

    Nader

  3. #3
    Thanks for the answer's they are very beneficial. When you say that they have to maintain balance, why would they have to? Or are you saying it is just in their very best interest to do it? Also, if I am essentially in competition with my broker, why do some brokers offer information about the markets to help us create our transactions?

  4. #4
    Quote Originally Posted by ;
    Jim, you may want to have a look at this thread...A lengthy discussion was there relating to this specific issue even though the thread started as a Trading Gamblin discussion...

    https://www.forexforum.co.za/trading...e-journal.html


    Due,

    Nader
    Hi Nader,
    Thank you for pointing this hyperlink. I dismissed the conversation since I never looked at trading as gambling... since I never really bet.

    But anyway, I checked out the thread and you had a very wonderful conversation with Fanat. .

    I think you'll find nuggets there that I can pick up. .

    Incidentally, I still haven't submitted the info you gave me a couple weeks back (?) Since I'm kind of prioritizing things right now. . But anyway, since I believe many can gain from it, I'll post it openly when I have the time.

    Thank you friend.

  5. #5
    Quote Originally Posted by ;
    Hi Nader,
    Thank you for pointing this hyperlink. I ignored the conversation since I never looked at trading as gambling... since I never really gamble.

    But anyway, I checked out the ribbon and you had a very wonderful conversation with Fanat. .

    I think there are nuggets there that I can pick up. .

    Incidentally, I still haven't submitted the info you gave me a couple weeks back (?) I'm sort of prioritizing things at this time. . But anyway, since I believe many can benefit from it, I will post it publicly when I've the time.

    Thank you friend.
    You're most welcomed my friend But I recall that what we have been exchanging over the email was about shares mainly, or maybe I can't just remember...


    Thank you,

    Nader

  6. #6
    Quote Originally Posted by ;
    You are welcomed my friend But I recall that what we've been exchanging over the email was all about shares mostly, or possibly I can't precisely remember...

    Thank you,

    Nader
    You are correct. . Mostly stocks, and questions regarding system development. .

  7. #7
    In general, it is your Broker/MM that has to maintain an equilibrium in the shorts and longs. If there's to a lot of this one or another, they need to take an opposite position to cover it...

    you may imagine how much they enjoy that, so if that happens, they will begin trying to move the market in their favour, and create their opposite position profitable.

    So in effect they do* get your money like that...

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