I've been thinking about all those 100 share bids
Post# of 72446
Posted On: 11/22/2016 11:28:43 AM
I've been thinking about all those 100 share bids or asks that we see. Sometimes I'll notice that 3 market makers will each have 100 share orders at the same bid or ask. I think they must be "tracking" shares, so the MM doesn't have to watch -- they have it set so there's an alarm if they get filled and then they can divert their attention from the other stocks they are screwing, to pay attention to CTIX.
Some years ago a guy who had been a junior market maker before he got disgusted and decided to earn an honest living, told me about the stuff they did. The tracking shares thing is consistent with the stuff he said. He also said that they would get bored, so if they would see a trade come in for a certain amount of shares in a thinly traded stock or option, they would keep moving the ask away from the bid. He said it's never a good idea to keep putting an order in for the same number because they know it's you, and they play a game to see how badly you want the stock -- so, how badly they can screw you. He said, if you cancel an order, make sure that you don't put another order in right away, and then make sure it's for a different number of shares so they think it's a different person.
Some years ago a guy who had been a junior market maker before he got disgusted and decided to earn an honest living, told me about the stuff they did. The tracking shares thing is consistent with the stuff he said. He also said that they would get bored, so if they would see a trade come in for a certain amount of shares in a thinly traded stock or option, they would keep moving the ask away from the bid. He said it's never a good idea to keep putting an order in for the same number because they know it's you, and they play a game to see how badly you want the stock -- so, how badly they can screw you. He said, if you cancel an order, make sure that you don't put another order in right away, and then make sure it's for a different number of shares so they think it's a different person.
(1)
(0)