{"id":71185,"title":"Everything you’ve wanted to know about Market Making, but never been able to ask!","publisher":"Share Talk","author":"sharetalk","published":"2020-05-25T11:14:41+00:00","modified":"2020-05-25T11:14:41+00:00","canonical_url":"https://www.share-talk.com/everything-youve-wanted-to-know-about-market-making-but-never-been-able-to-ask-2/","markdown_url":"https://www.share-talk.com/everything-youve-wanted-to-know-about-market-making-but-never-been-able-to-ask-2.md","json_url":"https://www.share-talk.com/everything-youve-wanted-to-know-about-market-making-but-never-been-able-to-ask-2.json","featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"**[piworld](https://www.piworld.co.uk/) **webinar with Spencer Crooks, ex-Director of Market Making at Winterflood Securities.\n\n**[Tamzin](https://twitter.com/tamzinpiworld) **opens with some questions, but this was the opportunity for listeners to ask their questions.\n\n \n\n \n\nSpencer’s background – 00:50\n\nWhat do Market Makers do? – 01:43\n\nWhat’s the business model? – 02:44\n\nWhy would a Market Maker buy when everyone’s selling? – 03:57\n\nWhat happens when a Market Maker gets it wrong? – 05:06\n\nDoes the risk level ever get too high for the Market Maker? – 06:30\n\nHow is the spread determined? – 07:44\n\nHow is the market size set? – 09:46\n\nWhat’s a tree shake? – 12:26\n\nWhat’s the motive for a Market Maker to elicit a tree shake? – 13:30\n\nWith a profit warning, what’s happening for a Market Maker – 14:46\n\nWhat is happening for the Market Maker when Covid-19 hit? – 18:55\n\nBut volatility is good for Market Makers? – 21:30\n\nFrom your days as a Market Maker how do you get the best deal today? – 23:38\n\nHow do different market makers agree on the price for the same stock? – 25:50\n\nWhat’s the best time of day to trade? – 27:33\n\nTiny trades, who places these? – 29:13\n\nDo Market Makers own any stock or do they just move it on? – 31:10\n\nAny advice for buying larger positions in smaller stocks – 34:05\n\nWould there be a better market without Market Makers? – 37:30\n\nDo Market Makers hunt stop losses? – 41:30\n\nIs it better to pay more for a full service broker? – 43:10\n\nWhat is Spencer doing now? 47:50\n\nWhat’s the future of the Market Maker? – 49:05\n\nIs Level 2 worth it for retail investors? – 53:00\n\nDo you miss the cut and trust of Market Making? – 53:55\n\n**About Spencer Crooks:**\n\nSpencer joined Bisgood Bishop in 1985. After takeover of Bisgood Bishop, traded at County NatWest until 1988, before leaving to join Winterflood Securities. Became a director in August 1999. Appointed FSI 2006\n\nhttps://www.piworld.co.uk/\n\n** Source Link** [www.piworld.co.uk](https://www.piworld.co.uk/2020/05/15/everything-youve-wanted-to-know-about-market-making-but-never-been-able-to-ask/)"}