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It serves the purpose of bringing all the market participants together to have the deepest market at the time of trading. This prevents pricing swings based on
by collinmcnulty 2y ago
It serves the purpose of bringing all the market participants together to have the deepest market at the time of trading. This prevents pricing swings based on who happens to want to trade right this minute. Trading more frequently actually allows brokers to collect rents in the form of a spread for the “service” of buying from you now and selling to me later. If we had a daily auction, we could avoid the need for such a broker spread.
- toomuchtodo 2y agoSupporting citation: https://www.bloomberg.com/news/articles/2024-04-29/stocks-trade-for-390-minutes-a-day-increasingly-only-10-matter https://www.bloomberg.com/news/articles/2024-04-29/stocks-tr... | https://archive.today/C5LVD https://archive.today/C5LVD ("Bloomberg: Stocks Trade for 390 Minutes a Day. Increasingly, Only 10 Matter")