Market Maker Manipulation!!
Alright, I wanted to post this up just for educational purposes to show members how the market maker will take advantage of their power and give you the WORST possible price.
The situation:
-The ask was $36.60, the bid was $36.33
-I SHORTED 100 shares, which means that I sold shares I did not have
-So, what the market maker does it gives me the shares at the NEXT purchase of shares.
-You will see a yellow and blue line, the yellow is the ASK, the blue is the BID
-Notice how the yellow line dropped for a split second and came back up,
this was right when I placed my order; SO market maker makes the next purchase $36.33, which means I got my shares shorted at $36.33 putting me down $30 within the first seconds of trade.
This is what we call a BAD BEAT! Solution: Use limits next time
Any questions about it post them up.
Regards,
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