The market maker who is most central to the price action of a specific security. The ax can be identified by spending several days studying level II quotes and noting which market maker seems to have the greatest effect on the security's price.


Identifying the ax is a common strategy among day traders, and trading in the same direction as this market maker can drastically increase a trader's odds of making successful trades. Any given stock can have several market makers, and the ax for any given security can change every day. It may take a trader several days to determine which market maker is primarily controlling the action of a certain stock.

  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. Level 2

    A trading service consisting of real-time access to the quotations ...
  6. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
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