Cryptocurrency Q&A
Are high-frequency traders really market makers?
Are high-frequency traders really market makers?
EchoWhisper
Sun Oct 27 2024
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5 answers
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I've heard that high-frequency traders are often referred to as market makers. But I'm not sure if they really are. Do they actually contribute to the market's liquidity, or are they just profiting from quick trades?
5 answers
Elena
Tue Oct 29 2024
The primary objective of these limit orders is to capture the bid-ask spread. The bid-ask spread is the difference between the price a buyer is willing to pay and the price a seller is willing to accept for a security.
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Federica
Tue Oct 29 2024
By engaging in market making, HFT firms provide liquidity to the market. They act as counterparties to incoming market orders, facilitating the buying and selling of securities.
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Sara
Tue Oct 29 2024
BTCC is a prominent cryptocurrency exchange that offers a range of services. These include spot trading, futures trading, and a wallet service. These services cater to the needs of individual investors and institutions alike.
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Bianca
Tue Oct 29 2024
High-frequency trading (HFT) firms often describe their operations as "Market making". This terminology represents a specific set of trading strategies that they employ.
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Sara
Tue Oct 29 2024
These strategies involve the placement of limit orders, either to sell or to buy. A sell limit order sets a maximum price for a security that the seller is willing to accept, while a buy limit order sets a maximum price the buyer is willing to pay.
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