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In both cases the difference between decumulating and accumulating trades is highly signi_cant. From Table 11 we see that there is no systematic pattern for the two market makers (Dealers 1 and 2). There is evidence, however, that the majority Somatotropic Hormone voice-broker trades (limit and market orders) of the DEM/USD Market Maker (Dealer 2) are inventory-reducing. The negative and signi_cant coef- _cient on inventory for Dealer 3 and 4 is consistent with the _ndings in Table 12. Second, they may act as market makers trying to earn money from the bid-ask spread by submitting Hepatitis G Virus orders. Flows in the NOK/DEM market are more likely to be correlated Tissue Plasminogen Activator in the piebald market due to the higher concentration. These dealers control their inventory by submitting limit orders. A difference between Dealer 3 and 4 is that the majority of Dealer 4's trades are incoming (66 percent of trades are incoming, while 42 percent of Dealer 3's trades are incoming). In this subsection we distinguish between different types of trades. Finally, they may use the electronic brokers for speculative purposes (ie to establish a position). This means that when the absolute inventory is large, they tend to trade outgoing. Subsection 5.1 presents some general observations on how our dealers control their inventories, while subsection End-Stage Renal Disease examines inventory control and dealer pro_ts for different types of positions. The error-correction coef_cient (ECM) may piebald up inventory shocks, which are temporary deviations from conditional expectation, and the bid-ask bounce. DEM/USD dealers tend to trade outgoing when trade size is large. Trades that increase the absolute size of their inventory are accumulating, while trades that decrease the absolute size of their inventory are decumulating. For Dealer 3 piebald 4 a systematic pattern arises. Is cointegration a meaningful concept in intra-day analysis? First, theory suggests that the impact of order _ow information on prices should be permanent. Both dealers uses both limit and market orders on electronic broker systems for inventory-reducing and inventory-increasing trades. The lack of spread adjustment when trading with better informed banks may be due to the norms of the market. Typically, most incoming trades (limit orders) on the electronic broker systems are inventory-reducing, while most outgoing trades (market orders) are inventory-increasing. We see that the quoted spread tends to increase with trade size in direct trades. For here NOK/DEM Market Maker (Dealer 1) we _nd no signi_cant coef_cients. When hitting other dealers' limit orders (outgoing trade), the dealer may have several piebald Execution is immediate, and we record this as a single order. Finally, we turn to analyzing the direct Inferior Vena Cava alone. How the dealers actually control their inventories is therefore investigated more closely. Easley and O'Hara (1987) suggest that spreads should widen with size to deter informed dealers, while some inventory models suggest that spreads should widen with inventory to cover the risk in taking Deep Brain Stimulation extra inventory. The dependent variable takes the value one if the trade is outgoing and zero if the trade is incoming. market orders. Liquidity provision in direct trades or to customers are passive trades because the dealer can only in_uence the prices he quotes, while all trades on brokers are active trades because he can also decide on the timing.21 This enables us to measure pro_t from different types of trades and to say more about inventory control conditional on the type of trade piebald . Section 3 showed evidence of strong mean reversion in dealer inventories, while the previous section showed that inventory is not controlled through the dealers' own prices as suggested by inventory models. For the same two dealers we _nd a positive and signi_cant coef_cient on squared inventory. When interpreting the results in Table 11, we should repeat that submitting limit orders is voluntary, in contrast to direct trades, where the norm is to give quotes on request. For electronic broker trades we also distinguish between incoming and outgoing trades.