do market makers just take price in the direction they want?

Discussion in 'Order Execution' started by 1a2b3cppp, Jan 28, 2018.

  1. When there are orders on both sides of price why would it go one way more than another?

    I've never seen a setting where the orders looked like this: Untitled.png
    in this environment obviously price would go up.

    Perhaps mapping it out on the chart with something like jigsaw would provide insights.
  2. Robert Morse

    Robert Morse Sponsor

    zdreg likes this.
  3. mbondy


    If i hit the bid, price would go down real fast ;)
    Xela and comagnum like this.
  4. tommcginnis


    "do market makers just take price in the direction they want?"

    It ain't me. :cool:

    (But FWIW, what you've picked up on here has been a reliable 2-3 minute indicator for a good couple of years. I don't know how it's not better recognized. I've touted it, at least. :rolleyes:)
  5. JackRab


    I see bids with 0 as size... why would it go up?

    I would say... if there's more volume on the offer, it's more likely that the price will go down in the near/immediate future.

    But that doesn't have anything to do with market makers, since they are usually quoting in similar size on the bid and offer...
  6. tommcginnis


    It's institutional hedging, so it's counter-market.
  7. JackRab


    Wut o_O
  8. maxinger


    in this environment obviously price would go sideway
    because most of the traders are sleeping / having lunch.
  9. tommcginnis


    Do you want me to hit google for you?
    You've got this, Jack.
  10. In this case there are no buyers, that means sellers control the market, that means price will go up.

    Put another way, the market makers have no lower orders to do anything with, so they have to use the higher orders.
    #10     Jan 30, 2018