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Kosta Ouzas explains how market makers create consolidation zones to build internal liquidity. They accumulate inventory in high-concentration areas, then distribute it to buyers when demand exceeds supply.

Kosta Ouzas explains how market makers create consolidation zones to build internal liquidity. They accumulate inventory in high-concentration areas, then distribute it to buyers when demand exceeds supply.
We have a. Another consolidation zone where the market makers collectively check the market and they create this consolidation so they can establish the temporary or the local fair value. And at the same time, they're building liquidity. There's some internal liquidity there. We can actually take a look at it right here. We'll just go zoom in on the low, higher, the higher concentrations. And you can see it being built in. So they build in that internal liquidity while they balance their book. Because we already know there is a tremendous amount of offsetting liquidity buyers up here. If you have more buyers than you have inventory, what do you do? You prepare and get more inventory to offset or to balance out these buyers. You're going to distribute this inventory into those buyers.