Traders and market maker games12 Nov 2018 22:06
...IMO. the spread is usually massive here, about 25 to 30%, so very risky for short term traders.
They have to make more than a 25/30% gain to make a profit and can easily be trapped in the share (which they hate because they always think theres a sure thing elsewhere that their missing out on) or have to sell at a loss if the price drops suddenly. Market makers play them though because they need volume to make more profit. So they push the price up to hook them and then manipulate the spread. If they narrow the spread from 30% down to say 10%, which I noticed them do yesterday for a while, then the traders will take the opportunity to sell and try make a quick profit before it turns against them. The MMs make more profit so their happy.
Some traders will make a profit but most probably won"t and will start moaning about how wide the spread is etc.
Its a risky game, so if you lost money just dry your eyes and move on to an easier share to trade with a tighter spread.
Market makers have plenty ways to influence the price..widening and narrowing the spread is just one of them.