Trongersoll
Junior Member
former Software Engineer
Joined: Jul 1, 2011 11:51:53 GMT -5
Posts: 178
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Post by Trongersoll on Aug 2, 2012 14:25:00 GMT -5
I think I'm missing something. It appears that i don't know how the nuts & bolts stockmarket works. I thought i placed an order with my broker and they passed it through to the appropriate exchange which then attempted to make a match and complete the trade. Where do firms like Knight Capital Group come into play and why? How do they get to stick their fingers in my pie (get a piece of my action)? "The company, one of the largest U.S. market makers, said it is "actively pursuing its strategic and financing alternatives," raising the possibility Knight could be sold or even face bankruptcy." What the heck is a market maker? "Some of the company's biggest customers, including TD Ameritrade, the No. 1 U.S. retail brokerage by trading volume, and Fidelity Investments are not routing orders through Knight." Why are trades being routed through them instead of being sent to the appropriate exchange directly? I find this all very confusing.  |
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 9, 2012 7:52:29 GMT -5
I think I'm missing something. It appears that i don't know how the nuts & bolts stockmarket works. I thought i placed an order with my broker and they passed it through to the appropriate exchange which then attempted to make a match and complete the trade. Where do firms like Knight Capital Group come into play and why? How do they get to stick their fingers in my pie (get a piece of my action)? "The company, one of the largest U.S. market makers, said it is "actively pursuing its strategic and financing alternatives," raising the possibility Knight could be sold or even face bankruptcy." Now we know why the average stock holder does not trade..It is all about information. My mother used to call it "A MARKET OF STOCKS".. I used the term on some papers of "Wall STREET JUNGLE!! BiMetalAuPt What the heck is a market maker? "Some of the company's biggest customers, including TD Ameritrade, the No. 1 U.S. retail brokerage by trading volume, and Fidelity Investments are not routing orders through Knight." Why are trades being routed through them instead of being sent to the appropriate exchange directly? I find this all very confusing. |
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safeharbor37
Well-Known Member
Joined: Dec 20, 2010 23:18:19 GMT -5
Posts: 1,290
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Post by safeharbor37 on Aug 9, 2012 16:10:20 GMT -5
It is my understanding that "market makers" are part of an exchange.
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 10, 2012 1:19:06 GMT -5
It is my understanding that "market makers" are part of an exchange. Safe, Market makers are independent firms like the "Two Dollar brokers" that work the floors going from booths to booths making the market when the orders are out of balance. The problem was the program thought the market was out of balance and did not have offers to buy.. So the Knight Program supplied the liquify where it was NOT needed. Keep buying and driving up the price.. only problem was they were the only buyer and the higher price made if profitable for the sellers to sell!!! Safty swatches did not cut in.. I was watching and wondering if I missed a buy out ?? BiMetalAuPt Edit: Also Knight did it best to talk the SEC into cancelling all the trades so it would not have a large loss.. They said no way...You did it ..You live with it.. That is a far cry from the"Honey Money "show where then CEO tald her how wonderful they were in paying all the deals made with there own cash.. That was putting wiped cream on a road apple.. They only did it because SEC made them.. If they did not they would have been out of business Monday. |
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 10, 2012 1:42:36 GMT -5
Message deleted by bimetalaupt.
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bimetalaupt
Senior Member
Joined: Oct 9, 2011 20:29:23 GMT -5
Posts: 2,325
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Post by bimetalaupt on Aug 10, 2012 1:43:41 GMT -5
Message deleted by bimetalaupt.
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safeharbor37
Well-Known Member
Joined: Dec 20, 2010 23:18:19 GMT -5
Posts: 1,290
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Post by safeharbor37 on Aug 10, 2012 15:06:28 GMT -5
I made a mistake. I should have said that, "Market makers are part of a brokerage." That's not always true, but market makers do perform a useful function. When you trade, market makers buy or sell your stocks. If you had to wait for the brokerage to find a seller or buyer, it'd take a lot longer. So market makers enable you to buy and sell almost instantly and, since they hold some of the stock, or other market makers do.
Of course, market makers get to skim off some of the profit if they play it right.
It's a lot more complex than my understanding, but the idea is that market makers do make the market work more smoothly.
That's my story and I'm sticking to it.
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Driftr
Senior Member
Joined: Mar 10, 2011 13:08:15 GMT -5
Posts: 3,478
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Post by Driftr on Aug 17, 2012 10:05:13 GMT -5
I saw one of my limit orders yesterday was being routed through Knight. Didn't fill.
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