Hi T2W,
I believe that Market Makers working a particular contract (for exemple Dax Futures) own the intraday market.
By that I mean that as a group, they compete for bid/ask but end up with a similar net position (long or short).
Because their job is not to hold directional exposure, it seems to me that they will be unloading their "inventories" of Dax Futures if their net position becomes too high.
This phenomeneon can be observed looking at intra-day graphs, when you see a slow up trend which is suddently interupted by a strong down bar.
As a result, I was wondering if anyone knew of a way to monitor Market Makers net position in order to forecast their liquidation process ?
I believe that Market Makers working a particular contract (for exemple Dax Futures) own the intraday market.
By that I mean that as a group, they compete for bid/ask but end up with a similar net position (long or short).
Because their job is not to hold directional exposure, it seems to me that they will be unloading their "inventories" of Dax Futures if their net position becomes too high.
This phenomeneon can be observed looking at intra-day graphs, when you see a slow up trend which is suddently interupted by a strong down bar.
As a result, I was wondering if anyone knew of a way to monitor Market Makers net position in order to forecast their liquidation process ?
