FOREX - Trends, forecasts and implications 2015 - page 1730
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
shit this has already been discussed somewhere. If someone buys, someone sells - in other words there is always a balance between buyers and sellers.
MM does it because he gets paid for it. Otherwise what the hell kind of MM is he? An ordinary rank-and-file speculator.
Danil, I guess we have a different understanding of MM.
I understand it this way: the essence of MM is not that he is paid rebate from the exchange - this is a relative innovation,
the essence of MM is that the classic MM - assumes that the price is roughly flat, but there is a spread,
and MM matches buyers and sellers via the exchange - i.e.
1) MM always stands on the exchange and a real client comes to buy from him -
2) MM sits in the position and takes the risk
3) another client comes and needs to sell
4) he sells to MM - he closes his position and ... most importantly he gets the spread
the point is that the real buyer and seller rarely come to the exchange at the same time
MM he is ready to hold a position - to bear the risk - this very period of time between the arrival of one and the other.
on this he takes the spread
If the price DOESN'T CHANGE, then everything works perfectly - the maker takes the spread for himself.
Now imagine the situation if clients only buy and buy and buy ..... and no one sells.
So mm gains himself a position ... that's bad for him.
it can. the question is how long he can do it...
your arguments ? and how long - what do you mean by a nanosecond ?
you want to estimate how much dough it would take to move the dolrub market by 10 kopecks?
your arguments ? and how long - what do you mean by a nanosecond ?
Do you want to estimate how much dough it would take to move the dolrub market by 10 kopecks?
for your understanding, MM has the right to move the price.
then explain where the correction comes from as we call it. in fact, it is MM's trading
and what is there to think about, read who sponsored the recent ruble bump and how much they lost.
Danil, I guess we have a different understanding of MM.
I understand it this way: the essence of MM is not that he is paid rebate from the exchange - this is a relative innovation,
the essence of MM is that the classic MM - assumes that the price is roughly flat, but there's a spread,
and MM matches buyers and sellers via the exchange - i.e.
1) MM always stands on the exchange and a real client comes to buy from him -
2) MM sits in the position and takes the risk
3) another client comes in and needs to sell
4) he sells to MM - he closes his position and ... most importantly he gets the spread
the point is that the real buyer and seller rarely come to the exchange at the same time
MM he is ready to hold a position - to bear the risk - this very period of time between the arrival of one and the other.
on this he takes the spread
If the price DOESN'T CHANGE, then everything works perfectly - the maker takes the spread for himself.
Now imagine the situation if clients only buy and buy and buy ..... and no one sells.
So mm gains himself a position ... that's bad for him.
There are always two sides and they include market traders, limit order traders and their stop orders. This is called liquidity - the ability to both sell and buy the quantity of a particular traded unit you are interested in at any time.
Another thing is, as Strange says, when there is a bias in this ratio to one side or the other. In this case, it may happen that the opposite side of the deal is not at the level you want and your position freezes and goes into deficit. How they handle it is a matter of algorithm
for your understanding, MM has the right to move the price.
then explain where the correction is coming from as we call it. in fact, it's MM's trading
and what is there to think about, read who was the sponsor of the recent ruble bump and how much they lost.
Did you write the MM ?
the population dumped the dollars.
The pound is up and the euro is up and let the watchdog laugh.
You are describing a situation that is not entirely realistic. But not impossible. I think we saw a similar situation in the franc not too long ago.
There are always two sides and they include market traders, limit order traders and their stop orders. This is called liquidity - the ability to both sell and buy the quantity of a particular traded unit you are interested in at any time.
Another thing is, as Strange says, when there is a bias in this ratio to one side or the other. In this case, it may happen that the opposite side of the deal is not at the level you want and your position freezes and goes into deficit. How they handle it is a matter of algorithm
I think this is a classic stock market situation from the 70s and 80s
mm is the liquidity provider - he is the one who stands in the market all the time - he makes sure that all the other participants can enter the market at any time -
and for that he takes the spread, but he has the risk,
all others do not stand but come and take (except for stops - which are very few) - that is, they "cross the spread" and give it to mm...
Your guess what is the algorithm based on ? What is the idea behind it ?
Don't go all in so you don't lose it in a nanosecond.
I'm already in the black.