Market makers

[TheAnalyst]

Hi everyone

I have searched the net and looked for books on exactly whata market maker does and what effect they have on the price of a share. I have also tryed to find anything that has the title "secrets of a market maker" but havent found anything.

I have found tiny descriptions of a market maker in various books; but nothing exhaustive or written by a market maker themselves or the influence they have on the market prices of shares.

I would be very interested to hear from anyone who knows the subject.

 

[money tree]

in Australia we dont have market makers for shares

 

[TheAnalyst]

so is there an equivalent and if so how is it handled?

And thanks for the info.

 

[DTM]

Try this link to an earlier posting about a day in the life of a market maker.

https://www.aussiestockforums.com/forums/showpost.php?p=13717&postcount=3

Basically it seems that they are there to provide liquidity in the market and to keep things flowing. They take calculated risks in taking in orders to make a market, ie they set the prices according to their risk graphs. There are also automated market makers too.