TAH imagine that you are the MM's ..... if you have buy or sell a LOT.... how exactly to do you that without pushing the price against your trades? This is where the MM and the stop hunts come back in to the picture... you have to induce someone else to take the other side of your position, so you need to make it look like taking that other side is an attractive deal... say when price pushes down below an established support, or the low of the day - just long enough to induce enough traders to sell - where you as the MM with the big position to...
This was discussed in conjunction with the oil price fixing fiasco in England recently. It is quite easy for them. Simply put, they "partner", and their "partner" could simply be another "account" within the same firm. So, what does having a "partner" accomplish if they want to move the price?
Consider that there are some pending orders, some for longs and some for shorts, between where price is and where they intend to manipulate the price to. They have to "satisfy" those orders, which means taking the opposite side so the price can move further beyond. In doing this, they will accumulate both long and short positions during their price manipulation. However, they must also bridge the gaps between pending orders. This is where the "partner" comes in. The "partners" put both buys and sells at whatever levels need them in order to get the price there and beyond. These pending orders, which are to be hit during the price manipulation assure that both partners have "canceling" results at each level,......"You sell to me and I buy. I sell to you and you buy. We both have a buy and a sell, which cancel each other." They do this in micro seconds as they bridge gaps to move prices. Furthermore, those nullifying buys and sells are for the smallest denomination pip there is! They could actually do this without nullifying and probably end up with positions representing only pocket change!
They do end up with positions collected over the price manipulation move, because they do have to take the opposite side of any unbalanced long or short pending orders at levels between where they start manipulating, and where they end up. If the net collected is long, and they are bears pushing up prices, they close for profit at the highs. If the net is short, they keep it. The reverse is true if they are bulls pushing price down. They keep net longs, but close for profit net shorts at the bottom.
The markets are not "free markets". That is a lie. They are extremely price controlled gambling arenas, where the big money operators rule. And they move prices to make profits. Price movements are far more instigated for profits than for any reasons of "real value" of the instrument being traded. Sure, a drought might raise the price of corn. Aside from that, speculator have a field day with corn prices, moving them up and down simply because they can, and because by doing so they can make profits by screwing other speculators (just as a hypothetical example).
Consider the stock market and all of it's derivatives (which I have long since ceased to trade in because of the most severe "in your face" price manipulations of all markets). Do you realize they can sell what does not even exist? Yep. Naked shorting, the legal selling of shares (can be in the millions if necessary) that do not exist, the dumping of counterfeit shares into the market to drive prices down! Does that sound like a "free market"? This is just an example of the way Big Money, "the Thieves of Wall Street", have their gambling arenas set up to take advantage of those with less money than them, so they can more easily take it.
Greed, arrogance, evil, and definitely not a level playing field,.....not in any of the markets......but the forex market is still the best there is to make money off of these bastards.
-tah
