can you guys give me some examples on how market makers play with a stock with news? upgrades,earnings ect.. also with stop losses and why. thanks guys.
Market making firms and NYSE Specialist firms, trade primarily off their order flow. They tend to provide liquidity on both sides of the trades, long and short. This allows them to stay relatively flat when they like. Many will simply just let the insitutions and public trade with each other, supply and demnd. Now, of course there are active trading MM's as well. They too tend to respond to the market vs. having opinions, which helps keep them out of trouble from news items, etc. Don