8 ms·
The intention of a trader on these kinds of markets is to make money. End. Telling him that you'll arrest him, or that he should feel bad, if he doesn't have th
by solve 11y ago
The intention of a trader on these kinds of markets is to make money. End. Telling him that you'll arrest him, or that he should feel bad, if he doesn't have the intentions and morality you want him to have - does absolutely nothing to change his intentions.
Markets work, despite this incredibly misaligned incentive, because markets can eventually reward people who are eventually more correctly predicting the future value of the assets.
FYI - your usage of the phrase "true price" makes me strongly confident that you totally misunderstand markets.