News for hackers. Stuff that matters.
Re:Founding a startup with zero revenue is better than worki... by cynicalkane on Tuesday September 14, 2010 @03:55PM (#1692035)
The value investor gets an abstraction over the ocean of algos and traders trying to out-game each other. The abstraction is that there's a market price and a book depth. The deeper the book, the more stock the value investor can move around without being gimped by increasingly undesirable prices. The more traders, the deeper the book.

Finance pundits worry about the implications of traders gaming each other. Let them game each other. The value investor sees a market price backed by millions of dollars of offers within pennies of each other. Should his trades move the market, much more liquidity will spring to life. The value investor feels fine.

There are no comments on this comment yet.