Market Maker can liquidate their position by limit orders?

Discussion in 'Order Execution' started by crazyfizikci, Jan 9, 2022.

  1. What kind of order is executed when market maker, big boys... close their positions.
    For example, when l m in position there two options to use to close my position either take profit order or stop loss order but both of them is executed as a market order. My Question is these big boys liquidate their position by limit order?
    Nobert likes this.
  2. Robert Morse

    Robert Morse Sponsor

    Why would they have to liquidate vs hedge? If a market maker of any asset class wanted to reduce risk, they would just lower or raise their prices until someone trades with them. What you have to understand is that they do not generally try to “close” if their risk is within their internal requirements. Individual components of their position are not generally important.
    Last edited: Jan 9, 2022
    emojitrading, Grantx, horizon and 6 others like this.