Market Makers Drive Market With Belief

A lot of foreign trading firms and many banks are market makers (MM). The role of the market maker is to sell and buy from its clients, being compensated by means of price differences for providing liquidity, reducing transaction costs, and facilitating trade. In other words, a market maker could be a company or individual that quotes both a buy and a sale price in a financial instrument or commodity being held in inventory. They hope to make money off of the bid-offer spread. Most stock exchanges such as the New York Stock Exchange, American Stock Exchange, and London Stock exchange use an order driven basis. When a buyers bid price meets a sellers sell price the stock exchange's match making system decides that a deal has been made. There may be no match makers involved, but they do still exist. When trading, it is crucial to be cautious or you may go broke. Every day market makers extract millions of dollars on a daily basis for their own benefits. Most people would say that the market is driven by price. To the contrary, it is actually driven by belief. If you were to believe that market was going to increase in value, you would likely act on that belief and vice versa. It actually comes down to what you believe. The market is a manipulated process, but it is not the market which is being manipulated but rather the beliefs of the traders by the market makers. There are three phases to this process: the accumulation phase, manipulation phase, and the profit release phase. The accumulation phase is when the accumulation of either buy or sell orders is taking place. Without this phase, there can be no profit release phase. You want to accumulate everything you can at a lower price and then sell at a higher price later on. The manipulation phase is when the market makers use practices to establish beliefs about future prices. It should be determined by the trader whether they are making buy or sell orders. The profit release phase is when the MM's are able to distribute what they accumulated from before. When the MM's are doing this outside. In the CFD Market Contract for Difference orders from traders donâEUR(TM)t go into the real market they are in a closed circuit, the trader is betting against the market maker, if the trader loses money the market maker will win the money.