Post by VBIAdmin on Sept 5, 2011 7:38:19 GMT -5
Post by Patchman on Investorshub:
Let’s say that you want to sell 1 million shares and put a limit sell at $0.045. That order is routed through a market maker. If the best bid is $0.043 they sit on this order. If somebody comes up with a 10,000 share buy at $0.045 the market maker sells them 10,000 shares at $0.045 and then comes back to your order and buys 10,000 shares. This could happen all day. By the end of the day, maybe ½ the order is filled and the market maker is not sitting on 500,000 shares they do not want.
Trades are executed like this every day.
The trades posted on the consolidated tape is the 500,000 shares traded between the market maker and the buyer. Because they did not have custody of the shares sold and only purchased custody from the originating long seller after, they have to mark the trade a short sale.
investorshub.advfn.com/boards/read_msg.aspx?message_id=47362383
Let’s say that you want to sell 1 million shares and put a limit sell at $0.045. That order is routed through a market maker. If the best bid is $0.043 they sit on this order. If somebody comes up with a 10,000 share buy at $0.045 the market maker sells them 10,000 shares at $0.045 and then comes back to your order and buys 10,000 shares. This could happen all day. By the end of the day, maybe ½ the order is filled and the market maker is not sitting on 500,000 shares they do not want.
Trades are executed like this every day.
The trades posted on the consolidated tape is the 500,000 shares traded between the market maker and the buyer. Because they did not have custody of the shares sold and only purchased custody from the originating long seller after, they have to mark the trade a short sale.
investorshub.advfn.com/boards/read_msg.aspx?message_id=47362383