Short excerpt from a YouTube video by Kosta Ouzas ("Bearish Inventory Collection") describing a market model where market makers purchase inventory at wholesale prices and then sell to retail buyers at higher prices. The speaker highlights that many buyers are already committed to buying at higher-than-fair prices, creating a captive retail market for the market makers.
They bought this inventory and then they started to return that inventory to. You have a massive amount of locked in sellers, I mean buyers who are going to buy high. All of these people have already committed, they say, hey, look, I am going to buy it high in these high price ranges above fair value. So it's a very simple business model. The market makers buy low at wholesale prices and they sell to retail prices higher.
