extra thick markets

Posted by maxb 
extra thick markets
March 20, 2012 01:17PM
Hi,

How does ipredict decide how to set the MM's? I've noticed lately that some high priced contracts such as REP12.IL.ROMNEY have very thick markets, with 10 stocks at each MM point and only about 0.001 seperating them.

If someone were to judge that the "true" price of this stock was 0.9000, they'd have to sell/short about 300 of them to get the market to this point. Not many of us have that kind of liquidity, so it's more difficult for us to set accurate markets.



Edited 1 time(s). Last edit at 03/20/2012 01:17PM by maxb.
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