So I guess my ignorance thought that you got the bid and all the orders and then the sells and if they match, you have an order.
So my guess is a MM is watching all the bids and ask and see the demand out there and they hold their buy information at one price and see if they can find ways to make the buys happen at a lower price.
What I don't understand is how can they force someone to sell at a certain level. Do they find clients who don't watch their money and show a 100% return to sell at one price so they can buy for another at a higher price and pocket the spread?
So my guess is a MM is watching all the bids and ask and see the demand out there and they hold their buy information at one price and see if they can find ways to make the buys happen at a lower price.
What I don't understand is how can they force someone to sell at a certain level. Do they find clients who don't watch their money and show a 100% return to sell at one price so they can buy for another at a higher price and pocket the spread?