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To: Protagoras

Every book I read mentioned market makers as people with deep pockets. So, all I know is market makers do have large accounts. I do not know what is large or small, but I don't think they were referring to personal accounts. I think market makers are trading with their company's money. Am I wrong here?


21 posted on 06/24/2005 2:22:50 PM PDT by blueberry12
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To: blueberry12
There are books and nebulous amounts of money,,, and then there is reality.

I will tell you this, and you probably will never see it in a book,,,no market maker bought 22 million shares of anything priced like the QQQs. Market makers make markets, they don't bet three quarters of a billion dollars on the direction of the market.

And you will need to have an understanding of hedging techniques and uses of ETFs and the like before you can make any intelligent conclusions on the effect of transactions on the market place.

A little bit of knowledge can be a very dangerous thing when conclusions are drawn from it and actual money is invested as a result.

22 posted on 06/24/2005 6:26:48 PM PDT by Protagoras (Now that the frog is fully cooked, how would you like it served?)
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