Re:Staff Report on Algorithmic Trading in U.S. Capital Marke...
by rytill on Thursday September 03, 2020 @01:45AM
(#24361091)
Thank you for this simple explanation.
Lowering tick size helps price discovery, but hurts open liquidity.
Is there some ideal constant average number of ticks between the bid and ask which optimizes this tradeoff given a desired state of liquidity and price discovery?
Lowering tick size helps price discovery, but hurts open liquidity.
Is there some ideal constant average number of ticks between the bid and ask which optimizes this tradeoff given a desired state of liquidity and price discovery?