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Thanks, that helped. My major mistake was to assume bid and ask prices will not change and ignored that you might really need the money and are willing to reduc
by danbruc 12y ago
Thanks, that helped. My major mistake was to assume bid and ask prices will not change and ignored that you might really need the money and are willing to reduce the asked price. So in essence market makers a paid to hold stocks they don't really want and take the risk of unfavorable price movements.
- tptacek 12y agoThat is exactly correct; the downside of the "free money" MM's get for "scalping" is "inventory risk".