For a future trader, it is necessary to perfectly understand all the nuances of a specialist's work. In the future, the success of your transactions will depend on, whether you correctly define the position of a specialist regarding any stock at a certain moment.
Functions, which are assigned to a specialist NYSE. Approximately works for the New York Stock Exchange 1366 specialists. Many of them work for some dealership companies, которые являются членами NYSE. Определенный specialist контролирует торговлю по отведенным ему акциям, appointed by the NYSE Board of Directors. Customer complaints about a specialist can lead to, that he will be demoted, that is, he will trade shares of a not very prestigious company. To qualify as a specialist work for NYSE you must buy first “specialist chair”, and the price for such a chair reaches 4 million dollars.
The main task of a specialist is to maintain an orderly and fair market for his group of shares., it implies, that trades will be executed at the best prices available at the moment. The specialist must maintain a minimum spread for quotes and prevent too sharp jumps in the share price.
The main main functions of specialists, working for the NYSE, are considered:
- the role of an active intermediary between sellers and buyers.
- announcement to the whole market of the best offer at the moment for sale and purchase, in other words, he is responsible for maintaining the quotes of his shares.
- the specialist monitors the execution and keeps records of transactions in his shares. When the seller and the buyer agree on a deal, they inform the specialist, which introduces the deal into the quote, and it becomes legal.
- determination of opening prices of shares. This price usually differs from the previous day's closing prices. For example, before the market opens, certain news about the company appears. On this day, a specialist can open Gap Up shares (намного выше) or Gap Down (much lower). He is obliged to find the optimal opening prices, which do not infringe on the interests of either sellers, no buyers.
- ensuring tracking the order of execution of incoming orders. To this end, he maintains a Specialist Book.
- specialists provide a calm and smooth movement of stock prices, they should not allow sudden jumps.
In a market condition, an equilibrium between supply and demand is not always established., for example, the specialist receives a certain number of Sell Market orders, at the same time, he is unable to execute them within reasonable prices for Buy Limit orders. This situation obliges the specialist to use his own capital in order to balance the market.. In this example, the specialist is forced to buy stocks for himself, then he will sell them, when there will be a surplus of buyers in the market. He must by his actions lead to, that prices will stabilize, and a balance will be established between the requests of sellers and buyers. В приведенной ситуации специалист работает в качестве trader.
specialist, buying and selling your shares for your money, hopes to make a profit in the future. However, his task is somewhat more complicated., than ordinary traders. He buys, when everyone sells, and sells, when everyone buys. As a reference: on average about 10% of the total volume of transactions in shares is carried out by NYSE specialists.
