Thanks, however there is situations where the MM is short. If the buyer wants shares, the MM sells them to them even if they don’t have them yet. The MM can wait tho flatten their book, which is evening out the buys and sells so they are not long or short. They do try to buy at a lower price to get a little gap for their own profit. In most traded stocks there are plenty of MM so this opportunity is hard to do, there is always another MM willing to buy and sell at market price. Generally a MM wants to close the market day with a flat position so they have no overnight risk.


What I don’t know is if when a MM sells stock and waits to buy to flatten their book is that a short position that is shown in the short volume?