2 ms·
If two traders want to buy 100 widgets at the same price, but there are only 100 for sale at that price, whose trade should 'win' that competition? Which is the
by growse 3y ago
If two traders want to buy 100 widgets at the same price, but there are only 100 for sale at that price, whose trade should 'win' that competition? Which is the 'better' trade?
- AlbertCory 3y ago> Which is the 'better' trade? You just said they were the same.
- growse 3y ago> 2) Traders competing to make the same trades, but a microsecond faster: serves no purpose at all. So if time of quote has zero value, then how should the market decide which two orders at same volume and price gets executed?
- infecto 3y agoJust randomly pick it. /s I find these threads are the opposite of Bitcoin threads. It brings out the wild opinions about financial markets.
- AlbertCory 3y agoGood point. "Time" in a computer is not a real number in the mathematical sense. It's quantized. So simply set the quantum unit appropriately and call all trades within that unit "the same time." Then the choice is between N identical trades that come in at the same time. Random seems as good a method as any.
- infecto 3y agoThat would be a naive solution. This is why I have stated there is no easy solution to these problems. Randomizing it would lead to actors gaming it. How would you randomize it? Random why order? Then I will just place more orders maybe. Random across actors? Then maybe I add more actors to the pool. Instead of stroking your ego talking about time, I hope you realize that the solutions to fair market participation can be challenging and it’s not as easy to just make a blanket statement.
- deleted 3y ago[deleted]