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Community


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Online Share Trading

Engage and learn about markets and trading online

Market Makers

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Beep_Beep
Super Contributor
Can you guys tell me how the market makers make things happen on the waves??
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3 REPLIES 3
Not applicable
Whatever they're supposed to do, you can't bargain on it actually happenning. Don't trade "at market" - you could be paying prices that's way different from the spread if you're not lucky. Also don't rely on automatic stop-loss - you should watch them waves closely. OMO
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Beep_Beep
Super Contributor
Ok - but how do they operate. I am not clear on their function as market makers. Are they only on bids or offers as well.
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Not applicable
Being market makers means that the issuer of a warrant will always be a buyer and a seller of its own warrants. If there's no buyers or sellers, the market maker should do both the buying and selling. The spread is what the trader gets charged for this "protection". OMO
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