First of all what do they do and how do they do it (ie take advantage of us)? And secondly how can we minimise the impact of it? I'm basically looking at warrants and optons here.
Warrant issuers often have pricing matrices but they don't always stick to it. And the 'market' disappears when it is really volatile eg recent correction.
With options, from what little I know, sometimes there is a market at other times you wont see a bit or offer for a while, do they take breaks during the day?? Very quiet in the morning and at the end of day. They seem to be a fair bit away from the fair value price too in terms of offers, bids seem to be closer to fair value, all from my very limited experience so correct me if I'm wrong. I've also heard Wayne and others mention IV and its effect on prices, not sure if MM's take advantage of that in any way but they probably do.
Money Tree suggest elsewhere that if you are having trouble being filled to halve the spread and you'll be filled quick. Eg 12c bid, 18c offer then you bid/offer 15c. Hope that's what he meant. I went for an ASX warrants beginners seminar and the person boasted that it has to be a 'win-win' situation or it wouldn't be in the mm's interests- I think that's not entirely true from what I've seen, us little people just get used a lot of the time.