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And that does not describe the stock market. Volume affects liquidity and spreads, not fundamental value. A market can set a price with a single buyer and sell
by semiquaver 1y ago
And that does not describe the stock market. Volume affects liquidity and spreads, not fundamental value.
A market can set a price with a single buyer and seller. More volume just makes the price more accurate.
- HaZeust 1y agoSort of. I've addressed this with another commenter already [1] >"What? THAT CASH comes from owning the inside spread on roughly half of every US equity share that trades. They quote a micro-price adjustment, and it pushes out anyone slower - which exactly the “service” that lets retail investors, like us, hit a bid or ask. > >Honestly, whether YOU want to call that trend-following or market-making - I can't be arsed, but it’s still data-retrieval that runs THE institutional scale" I find this comment chain becoming cyclical, so I'll likely end it here. 1 - https://news.ycombinator.com/item?id=44495361 https://news.ycombinator.com/item?id=44495361