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The order book provides liquidity. When someone sells a swap, someone else buys it. Of course, the amount of liquidity and spread available will depend on how
by smabie 5y ago
The order book provides liquidity. When someone sells a swap, someone else buys it.
Of course, the amount of liquidity and spread available will depend on how popular the coin or specific contract is.
- mannykannot 5y agoLiquidity has a tendency to dry up when everyone wants it, especially in a highly-leveraged derivative. The fact that options have an expiration date seems to mean that trading cannot just stop when things are going badly.