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Market makers shorting to fill buy orders - Is this an essential mechanism to ensure timely trades or artificial transactions disrupting price discovery and supply/demand economics? Are there any other fun market maker mechanisms that you aware of?
↗ https://reddit.com/r/investing/comments/1wcjwua/market_makers_shorting_to_fill_buy_orders_is_this/
I’ve always been curious about the mechanics of market making and the mechanisms for filling orders. I’m not sure if shorting shares to fill orders is even a common practice - just curious on everyone’s perspective. Seems like a necessary evil but leaves the market vulnerable to manipulation. Does anyone have any fun insight?