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

03-26-2015, 03:45 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.