Can also the whales lose? What if they try to force the price to breack a resistence (buying a lot of stocks), but there is not so much liquidity for they to cash out being in profit?
Can also the MM (market makers) lose?
- Thread starter lucacrebbe
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Yes, market makers can definitely lose - market-making in some of the modern markets is very difficult, especially during times of unexpected volatility.
As for your question on cashing out after forcing a breakout through resistance, that's not how the market makers work, especially in stocks.
As for your question on cashing out after forcing a breakout through resistance, that's not how the market makers work, especially in stocks.
Yes, market makers can lose at some point in time. For example, in one day. I heard that some dealing bring sellers with buyers within themselves, within $50K. That is, they are ready to lose no more than 50 thousand dollars. If the total amount is more, they will bring the transaction to the interbank.They act as market makers, only in the range of 50 thousand.
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