question on dealer, thanks.

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shangfhai

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on p.14 of book 1 of schweser notes:
on what is a dealer:
it says: When taking the other side of a transaction, the dealer is an adversary in the sense that any buyer and seller are adversaries seeking to earn profit.
“the typical adversarial buyer versus seller role.”
what does it mean??? i dont get it…
please help guys! thanks!
 
you are selling something. You want to sell it at the maximum possible amount. A buyer (in this case the dealer) wants to buy it from you at the lowest possible amount.
 
An adversary is an opponent in a contest.
You want a higher price than he will pay…….He wants to pay you less than you would actually like him to pay, so that he can make more profit for himself.
There is a certain competition here as he cannot underpay by too much, or you will sell elsewhere and another dealer may make a small profit, where as your original dealer who missed the trade entirely, obviously makes none!
As simple as that no?
 
Brokers are your friends: they’re trying to make money for you.
Dealers are your enemies: they’re trying to make money for themselves.
 
like the late great philosopher Tupac once said:
My adversaries cry like hoes fully eradicate my foes
My lyrics explode on contact, gamin you hoes
 
S2000
Brokers are your friends?….You’ve never worked as a dealer have you? :)
 
1BigStudMuffin wrote:
like the late great philosopher Tupac once said:
My adversaries cry like hoes fully eradicate my foes
My lyrics explode on contact, gamin you hoes
Click to expand...
does not rhyme……
 
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