Okay so I have heard that the market makers will move the market to clear out peoples stops. I can see two reasons why they would do this but I am not sure which one is the real reason. If a market makers clears out a bunch of peoples' stops which are at a loss, does that market maker get that money? Or is the reason they move the market to clear peoples' stops in order to get their own orders filled? In other words, do they sometimes have to get the price up/down to people's stops in order to have someone who will fill their orders?
I don't know, maybe I'm way off but any explanations would be much appreciated.
I don't know, maybe I'm way off but any explanations would be much appreciated.