Implication: So if price moves one way quickly (say up), then reverses quickly (down), MarketMaker is offering liquidity he is unable to pass on. So if price keeps going down he has to liquidate at some stage at a price worse than he is offering or be on the wrong side of tanking market. This would accelerate the price reversal.
Last edited Jan 18, 2011 9:05pm
| Reason: edited for clarity
|