RE: 50/5011 Sep 2025 13:17
So, MrBumble tells us a Market Maker raises the bid because they do not want to attract sells into their inventory thereby increasing their risk - the bloke is from the 'upsidedown'..
Market makers fill large buy or sell orders, known as "reserve dumps," by dynamically adjusting their bid and ask prices, their quoted quantities, and their inventory risk management strategies. They use real-time market data, sophisticated algorithms, and risk management systems to manage their inventory and ensure liquidity, scaling back their participation in the order book when inventory limits are approached or risk increases. By balancing the need for profit with the risk of holding large positions, they aim to provide liquidity while executing client orders at acceptable prices.