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17:54 Mar 16, 2002 |
Dutch to English translations [PRO] Bus/Financial | |||||||
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| Selected response from: jarry (X) South Africa Local time: 17:38 | ||||||
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Summary of answers provided | ||||
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4 +2 | market making |
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Discussion entries: 1 | |
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market making Explanation: The job done by market makers. What is market making? Market making means that a trader or a company puts both buy and sell orders into the market, and wait for people to trade with him on either sides. In every market, price is quoted with both a bid and an offer price, with the latter a little bit higher than the former. Ordinary traders and investors "take the market," buying at offer price and selling at bid price. However, market makers could sell at offer price and buy at bid price. For example, imagine that the last price of XYZ stock is 10.00 and a market maker puts a 9.90 buy order and a 10.10 sell order into the market simultaneously. If someone hits him by selling at his buying price of 9.90, he gets a long position. If he thinks that the price of XYZ stock would rise further, he would hold the position for a while and square it at a higher price. If he is neutral or even bearish, he may sell the stock right away. If the price in the next second is 9.92 Bid/ 9.95 Offer, he may make the market again by putting a sell order at 9.95 and wait for somebody to buy from him, or just sell at 9.92 to take the market. Market makers trade from market fluctuation to make money. They like volatile rather than one-sided markets. If the market keeps rising or falling, they will run into the problem of taking positions that are against most people. Market makers don't care much about the long-term trend, or fundamentals, but focus on the short periods of abnormal price movement. They trade hundreds or even thousands of round-turns every day, and accumulate small gains into big profits. -------------------------------------------------- Note added at 2002-03-18 09:30:04 (GMT) -------------------------------------------------- Chris, I\'m afraid I don\'t know the meaning of \"marktvorming\" in the context of \'fund providers\'. I agree with you, however, that in Dutch (not Belgian Dutch) the market making is mostly rendered as \"een markt onderhouden\". In the context provided by the asker, however, I thought \"marktvorming\" could not really refer to anything else. -------------------------------------------------- Note added at 2002-03-19 09:01:59 (GMT) -------------------------------------------------- In view of the additional information you provided, it sounds as if the Dutch word is simply a reference to market forces: \'the forces of supply and demand, which determine equilibrium quantities and prices in markets. Perhaps market mechanisim is an option as well. |
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