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I think that is too simplistic. For example, in a CLOB market putting something in the order book is visible and depending on price and volume will not just exe
by RandomLensman 6y ago
I think that is too simplistic. For example, in a CLOB market putting something in the order book is visible and depending on price and volume will not just execute in one go and therefore cause change. But it is a market reaction to a published intend to trade.
Issues around market microstructure, liquidity etc are very well researched.
- seibelj 6y agoYou do not understand me. Reactions to an order make sense. But if I click "Buy", and before the order hits the book, the software vendor that is processing my order notifies a market maker to increase their price in order to make me pay slightly more, this would be unfair ("front running").