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Effective_Health2358 t1_iubzrbu wrote on October 30, 2022 at 4:10 AM

Reply to comment by ringingbells in Is it just me, or is a a Market Makers' role in Order/Execution/Settlement confusing? Question: The CEO of Webull talked about their Market Maker, saying: "We're able to buy a share without driving up the stock 10% every time?" What does this work with Price Discovery & Supply & Demand? by ringingbells

Exactly, but sometimes they don’t have organic traffic to cover the buy/sell orders.

In these cases, they just go short the shares ppl buy and later cover from the market or internal traffic.

By law, they must deliver shares within the bid/ask of the market, which protects retail.