Explain the mechanism. If I opened on one market maker, how can I now close on another market maker? - page 10
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Here's a counter question for you. Does a limit bid move the price?
:)
How do you imagine the death of the market?
Simple. People stop speculating on the price of unclaimed goods.
No money for traders? No demand? No supply? - The market is dead. On the other hand, another market is nearby. The natural course of things.
The limit only moves the price if the limit is removed.
Exactly.
Simple. People stop speculating on the price of unclaimed goods.
No money for traders? No demand? No supply? - The market is dead. On the other hand, another market is nearby. It's the natural course of things.
And if a company has just launched an IPO. Or an initial public offering of bonds, what about when the Ministry of Finance needs to sell the entire issue on the market?
A limit moves the price only if that limit is removed.
If this limit forms the best supply or demand. Then if it is removed, the spread will widen and of course the best price will change. If the limit is deep in the cup and it is removed, it will not affect the price.
If this limit forms the best supply or demand. Then if it is removed, the spread will widen and of course the best price will change. And if the limit is deep in the cup and it is removed, it will not affect the price.
Well, that's right. If MM ONE is responsible for all the limit volumes and "overflows" them inside the cup, what prevents him (within the framework of increasing volatility) from moving the price himself? Bifurcate and become a trader and MM in one person. Then he has carte blanche.
1. Others will not be able to move the price, because their limit volumes are large.
2. they are large because he attracts traders with liquidity. 3.
3. he needs to take care of volatility.
These are the reasons to move the price anywhere, without reference to anything.
The main thing: if one has hundreds of times more financial resources than others, he/she presses the market with its natural self-regulation, and as a result, the market becomes his/her personal money machine.
If this limit forms the best supply or demand. Then if it is removed, the spread will widen and of course the best price will change. If the limit is deep in the cup and it is removed, it will not affect the price.
Well, right. If the MM is ONLY responsible for all limit volumes and "overflows" them within the cup, what prevents him (as part of the volatility boost) from moving the price himself? Bifurcate and become a trader and MM in one person. Then he has carte blanche.
1. Others will not move the price anyway, because his volumes are large.
2. they are high because he attracts traders with liquidity. 3.
3. he needs to take care of volatility.
These are the reasons to move the price anywhere, without reference to anything.
The main thing: if one has hundreds of times more financial resources than others, he/she presses the market with its natural self-regulation. As a consequence, the market becomes his personal money machine.
I advised the starter above to google the functions of the market maker. I advise you to do the same.
Limits only form supply, they don't form demand.
Yes, I did. Well, I wrote it wrong a little bit. By demand, I meant buy limits. By supply, I meant sell limits. I'll rephrase - If this limit forms the best buy or selloffer. Then if it is removed, the spread will widen and of course the best price will change. If the limit is deep in the cup and it is removed, then it will not affect the price.
Yes, I did. Well, I wrote it wrong a little bit. By demand, I meant buy limits. By supply, I meant sell limits. I'll rephrase - If this limit forms the best buy or selloffer. Then if it is removed, the spread will widen and of course the best price will change. If the limit is deep in the cup and it is removed, then it will not affect the price.