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I think you maybe have some misunderstandings around the practicalities limit orders and market microstructure (not withstand some theoretical model of risk fre
by hhmc 5y ago
I think you maybe have some misunderstandings around the practicalities limit orders and market microstructure (not withstand some theoretical model of risk free market-making, which has broadly been superseded, if you care about the theory at all).
- JumpCrisscross 5y ago> you maybe have some misunderstandings around the practicalities limit orders and market microstructure Perhaps. I haven’t been on a market-making desk for close to a decade now. But to correct one misconception in your comment, market makers don’t commonly use limit orders. (You’d submit a quote and try to hit rebates.)
- hhmc 5y ago> But to correct one misconception in your comment, market makers don’t commonly use limit orders. (You’d submit a quote and try to hit rebates.) They do in the asset classes I work with, YMMV
- kgwgk 5y agoHow are quotes different from limit orders? [Edit: apart from the originator, I mean.]