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(Trade volume is relevant because it's how market makers make revenue. They make, in aggregate, at most half a penny per share traded.)
by loeg 2mo ago
(Trade volume is relevant because it's how market makers make revenue. They make, in aggregate, at most half a penny per share traded.)
- Retric 2mo ago> No. Combined, it is still de minimis. US equity markets alone trade something like $500B/day of volume or like $125T/year. If that was what you where trying to describe the second sentence is unconnected to the first. > half a penny per share traded That’s far from de minimis. Rebalancing a portfolio now becomes quite expensive over a lifetime. You lose 0.5c selling and 0.5c buying, on say a 10$ stock and that’s 0.1% per transaction, and you don’t rebalance once.