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A comment on Coinbase says buying and selling temporarily disabled amid price rout. Parent comment

Re:Coinbase says buying and selling temporarily disabled ami... by Blackthorn on Friday December 22, 2017 @12:38PM (#15989282)
> I've wondered about this. Specifically, how can you make a market in a product that has high violatility and fairly low trading frequency?

A large spread.

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Re:Coinbase says buying and selling temporarily disabled ami... by ethbro on Friday December 22, 2017 @03:37PM (#15990701)
Hmm. So are market makers only ever effecting instantaneous matches?

I was under the impression they often held some portion of the asset between buy-sell or sell-buy in order to increase liquidity.

(Which would explain why they like HFT, as anything that boosts trade frequency would decrease their exposure)

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Re:Coinbase says buying and selling temporarily disabled ami... by Blackthorn on Friday December 22, 2017 @04:14PM (#15990970)
They do hold underlying and have to hedge their risk in various ways. A large spread helps a lot.
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