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Yep and what's worse is many hft firms aren't in the market-making business at all but actually REMOVE liquidity.
by blakers95 2y ago
Yep and what's worse is many hft firms aren't in the market-making business at all but actually REMOVE liquidity.
- FredPret 2y agoWhat's the mechanism for removing liquidity?
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- itchyouch 2y agoAdding liquidity means to place an order that sits on the book while removing liquidity means to execute against an order that's already resting on the book.
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- cheonic730 2y ago> What's the mechanism for removing liquidity? Liquidity removal = market order Liquidity providing = limit order (not immediately executable)
- usefulcat 2y agoThe order type is a red herring (you can take liquidity with a limit order). The only difference between an order that removes liquidity and an order that adds liquidity is whether it executes upon arrival (removing liquidity) or rests on the order book on arrival (adding liquidity).
- alchemist1e9 2y agoThis comment is how to tell me you completely misunderstood CLOB market structure without telling me.