Everything you’ve wanted to know about Market Making, but never been able to ask!

piworld webinar with Spencer Crooks, ex-Director of Market Making at Winterflood Securities.

Tamzin opens with some questions, but this was the opportunity for listeners to ask their questions.

 

 

Spencer’s background – 00:50
What do Market Makers do? – 01:43
What’s the business model? – 02:44
Why would a Market Maker buy when everyone’s selling? – 03:57
What happens when a Market Maker gets it wrong? – 05:06
Does the risk level ever get too high for the Market Maker? – 06:30
How is the spread determined? – 07:44
How is the market size set? – 09:46
What’s a tree shake? – 12:26
What’s the motive for a Market Maker to elicit a tree shake? – 13:30
With a profit warning, what’s happening for a Market Maker – 14:46
What is happening for the Market Maker when Covid-19 hit? – 18:55
But volatility is good for Market Makers? – 21:30
From your days as a Market Maker how do you get the best deal today? – 23:38
How do different market makers agree on the price for the same stock? – 25:50
What’s the best time of day to trade? – 27:33
Tiny trades, who places these? – 29:13
Do Market Makers own any stock or do they just move it on? – 31:10
Any advice for buying larger positions in smaller stocks – 34:05
Would there be a better market without Market Makers? – 37:30
Do Market Makers hunt stop losses? – 41:30
Is it better to pay more for a full service broker? – 43:10
What is Spencer doing now? 47:50
What’s the future of the Market Maker? – 49:05
Is Level 2 worth it for retail investors? – 53:00
Do you miss the cut and trust of Market Making? – 53:55

About Spencer Crooks:

Spencer 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

Content for the retail investor

 Source Link www.piworld.co.uk


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Share via
Copy link
Malcare WordPress Security