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MB Ji. I believe market makers are those who prevent crash or increase without reason.
They sell when market increase too much or buy when market crash.

Since, they are new, no experience, they may fail in short run.
Hope they target price at =/- 15%.

About 1.5 year ago there was crash for no reason. When evil spirit used to dump share worth 50 crore in a single day there used to be crash then panic seller used to join that is why there was crash of around 15%. They spread garbage then dump share and then there was crash.

Lately, there is no crash or increase cause there is another group of investors who buy when price decrease 10 rs and sell when price increase 15rs that is why market is moving like minus 10 and plus 15. The bull.

If market maker have 10 billion fund and keep 5 billion in reserve, evil spirit wont be able to manipulate the market suing money and evil media.

We still have to see their work.

Dear all !
Specially Im missing views of Rising Sun and Shooting Star!

Im not an expert so I just have speculated on "market maker".
I request you all to take part in the discussion with open heart!

What market maker is?

I think it is the market equilibrium!

Description:

Market maker should have sufficient money ,I think it needs kharba or more rupees.

This will balance bull and bear...steady growth and steady fall.

Whenever there is lake supply it will start to offload and whenever there is lake of demand it starts to buy!

As the market maker quotes every trading days:
First is selling price ie. suppose 900 for mnbbl.
Second purchase price ie. suppose 850 for mnbbl.
While trading hour if mnbbl could be lucrative than there could be scarcity and buyer could demand it even in higher price ;it could be more than 900 for the day ,lets say 930.Meanwhile marketmaker will start to offload its share at the pre quoted price so there will be sufficient supply in the market and vice verca.

Bad thing it could stop bull but good thing it will stop loss in bear as well.

Another thing market maker enter in the market not only with bulk quantity but also it purchase as common investors ...and it exist in the same way.It stops oversuppy as well as overdemand.

It buy targeting certain profit and it sells after that.

Prospects:
1) Steady market it stops higher volatility.
2)Common/ ignorant investor also could be benifited! No need to worry to miss higher loss nor to gain higher.
3)It could Establish sustainable capital market!
4) Its boon for long term investor.
5) More new investor will enter in the market.

Drawbacks:
1) probability of market manipulation, it could do wrongly while supply decreases it also could stay silent same in demand side as well
2) Trader won't get as high profit as they are making now!
3) Short term trader may escape from capital market and inter in new business as well
4)......


Could CIT play balanced role as market maker in Nepalese capital market???