3 ms·
> The world is continuous, not discrete. Therefore, like it or not, trading must be continuous and not discrete. That is not true, there are market models wher
by seppel 6y ago
> The world is continuous, not discrete. Therefore, like it or not, trading must be continuous and not discrete.
That is not true, there are market models where you run auctions all the time (with short but random auction end).
- lucaspauker 6y agoGreat point. Adding onto this, an example of an auction is debt issuances. Also many exchanges use auctions (https://www.daytradetheworld.com/wiki/tse/#auction_mechanisms https://www.daytradetheworld.com/wiki/tse/#auction_mechanism...) during opens and closes. Essentially auction mechanisms mean that speed is not as important for participants.
- harryh 6y agoNone of those models will fully disconnect participants their real world experience and the incentives that creates. At the end of the day if I can see something in the real world and react to it faster than you can, that will give me an edge. That's just reality.