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Topic: MM BxA

kdb83182
Member

Member Rated:

posted

I was just wondering if anyone can explain why there is always an MM on both the bid and ask in a very extreme location. Not just penny stocks even in the big boards. For example there was an MM on YHOO today sitting at .01 on the bid and 9,000 on the ask. What is the goal of doing this as they do it on every stock in every exchange...just wondering.

Thanks in advance.

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Money often costs too much. - Emerson

**ALL POSTS ARE IMHO, DO YOUR OWN REASEARCH.**

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10of13
Member

posted

To my understanding there is at least one "MM" in charge of each stock...taking orders for "different" companies or "groups"

Someone correct me if I am wrong...

Take a look at this...maybe it will help

http://daytrading.about.com/library/jargon/bl_mm.htm

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#1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!

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metal1
Member

Rate Member

posted

if that quote was during trading hours it just means that MM isn't doing anything in that stock right now. ie..no orders, no position and doesn't want any action in it

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