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Re: market making



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With the way nasdaq stocks move now, 5 or 10 points a day sometimes, this 
sounds like a sure path to ruin. Marketmakers don't really make their money 
this way any more. They make it by manipulating prices, trading against block 
customer orders, and generally out-trading the public.

In a message dated 6/21/01 2:36:25 AM Pacific Daylight Time, 
r-hodge@xxxxxxxxxxxxxxx writes:

> Hi,
>  
>  Interested to know if anyone on the list uses a classical "marketmaker" 
type
>  strategy in their electronic trading...ie, bid/offer whatever distance
>  apart. When bid is hit you move back predetermined amount to bid/offer at
>  new levels until you either get too long or your position is closed by
>  someone lifting your offer..at which point you reset and go again.
>  
>  If so what have you found to be the key determinant to your success/failure
>  apart from (low) commissions...?
>  
>  Thanks,
>  
>  Robert
>