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Good question. I would imagine not, especially from the point of view of someone who can exploit an illiquidity.
by drx 16y ago
Good question. I would imagine not, especially from the point of view of someone who can exploit an illiquidity.
- sambe 16y agoGood answer. Arguably, in a simplistic sense more liquidity is always better for the functioning of the market. But if we have a lot of "false" liquidity that perhaps encourages people to make optimistic assumptions, and that liquidity can go away... like it did a few weeks ago (or during a crisis...). Maybe some people can profit from this, especially if they have the ability to front-run?