Continue from pt 1
Make sure you don’t confuse market makers with market maker bots, which are high-frequency trading software to increase liquidity in the crypto market. There are also bots available on GitHub or GunBot for use on platforms such as Market Maker 4 BitMex.
A market maker of last resort (MMLR) is another realisation of the same philosophy. This describes exceptional market intervention by a central bank to improve the liquidity of a market whose lack thereof poses a threat the financial stability.
Market Maker Signals
It is illegal for market makers to talk to each other about trades in the execution queue. Many people believe that, instead, the brokers communicate through signals or codes. The situation with a particular stock is communicated by buying a particular number of penny stock shares and this transaction is displayed in the level 2 market data. These signals are not expensive for the market makers, as often the share value is less than the commission required. However, these are helpful to work with other brokers to present an even pricing strategy. However, many people doubt that these signals are real, so be wary of traders trying to use them as trading clues.
Some examples of well-known market maker signals are code 1/signal 100 (the entity requires shares), code 4 or 400 (no apparent trend), code 500 (gap the stock), signal 666 (market maker is looking to bring the price down), 777 (market maker is looking to bring the price up), signal 911 (upcoming news release) and signal 999 (fake wall, a strategy by big investors to artificially change the price).
Make sure you don’t confuse market makers with market maker bots, which are high-frequency trading software to increase liquidity in the crypto market. There are also bots available on GitHub or GunBot for use on platforms such as Market Maker 4 BitMex.
A market maker of last resort (MMLR) is another realisation of the same philosophy. This describes exceptional market intervention by a central bank to improve the liquidity of a market whose lack thereof poses a threat the financial stability.
Market Maker Signals
It is illegal for market makers to talk to each other about trades in the execution queue. Many people believe that, instead, the brokers communicate through signals or codes. The situation with a particular stock is communicated by buying a particular number of penny stock shares and this transaction is displayed in the level 2 market data. These signals are not expensive for the market makers, as often the share value is less than the commission required. However, these are helpful to work with other brokers to present an even pricing strategy. However, many people doubt that these signals are real, so be wary of traders trying to use them as trading clues.
Some examples of well-known market maker signals are code 1/signal 100 (the entity requires shares), code 4 or 400 (no apparent trend), code 500 (gap the stock), signal 666 (market maker is looking to bring the price down), 777 (market maker is looking to bring the price up), signal 911 (upcoming news release) and signal 999 (fake wall, a strategy by big investors to artificially change the price).
