oussama94
05-28-2017, 19:26
accommodate the interests of the specialist, not those of the traders. If,
for example, the market is filled with sellers from whom the specialists
must buy but no prospective buyers on the other side, the specialists will
be forced to buy from the sellers and be unable to sell a commodity that is
being sold off and hence falling in value. In such a situation, the specialist
may simply widen the spread, thereby increasing the cost of the trade and
preventing additional participants from entering the market. Or specialists
can simply drastically alter the quotes they are offering, thus manipulating
the price to accommodate their own needs.
for example, the market is filled with sellers from whom the specialists
must buy but no prospective buyers on the other side, the specialists will
be forced to buy from the sellers and be unable to sell a commodity that is
being sold off and hence falling in value. In such a situation, the specialist
may simply widen the spread, thereby increasing the cost of the trade and
preventing additional participants from entering the market. Or specialists
can simply drastically alter the quotes they are offering, thus manipulating
the price to accommodate their own needs.