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View Full Version : Here's How Market Makers Make Money


badcompany
03-26-2015, 04:45 PM
They close a stock just below a point where they know a lot of selling or, in this case, Buying to Cover will be triggered. Open the stock the next day on a gap. Then, scoop the money off the table.

This is a downside of "systematic trading" that Hedge Fund Managers would rather their clients not know. You're essentially playing the game with your cards face up. A discretionary trader can smell this rat and get out.

http://i95.photobucket.com/albums/l142/thinlizzy21/7f353525ac461f5e66d1f996bd52fab7_zpsohpch4ya.jpg