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Thank you for this simple explanation. Lowering tick size helps price discovery, but hurts open liquidity. Is there some ideal constant average number of tick
by rytill 6y ago
Thank you for this simple explanation.
Lowering tick size helps price discovery, but hurts open liquidity.
Is there some ideal constant average number of ticks between the bid and ask which optimizes this tradeoff given a desired state of liquidity and price discovery?