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Is quantitative traders' role in the economy similar to that of cryptocurrency miners: they form consensus on the state of the market?
by ComodoHacker 9y ago
Is quantitative traders' role in the economy similar to that of cryptocurrency miners: they form consensus on the state of the market?
- rocqua 9y agoThat would be the case for Market Taking and Arbitrage. They help with determining an accurate price (Market Taking) and with keeping prices equal on all exchanges (Arbitrage). For Market Making the goal is not to form consensus on the state of the market. Instead, Market Making is about creating a liquid market. That is, making sure that when someone wants to buy or sell, there is a willing counterparty at a non-stupid price. Alternatively, you could describe them as 'keeping the spread low'. That is, keeping the difference between the lowest buy order and highest sell order low.