3 ms·
If you're a market maker, why wouldn't you? Your whole value-add is that you provide liquidity to folks who want to sell but can't find a buyer (a service in p
by nostrademons 4y ago
If you're a market maker, why wouldn't you? Your whole value-add is that you provide liquidity to folks who want to sell but can't find a buyer (a service in pretty high demand for LUNA right now), sell it at a later time point when there are relatively fewer sellers and relatively more buyers, take on the risk that there will never be fewer sellers and more buyers, and pocket the difference in spread. There's obviously risk in this, but if your business is market-making, you presumably have statistical models of this risk that you incorporate into the price you're willing to pay.
- quickthrowman 4y agoIf I was making a market for terra, my bid would be $0.00, any higher is too much risk. No point in making a market for something that has 0 value and virtually 0 liquidity.