News for hackers. Stuff that matters.

A comment on Why Is Spoofing Bad?. Parent comment

Re:Why Is Spoofing Bad? by msandford on Thursday April 23, 2015 @09:14AM (#9426410)
So there are no institutional investors who ever need to sell? Or maybe it's that people aren't willing to wait at all when they want to sell, so putting it on the dark pool for a few hours or days isn't really an option. Where as if you want to buy you might be willing to wait a day or two.
[ Parent | on HN ]
Re:Why Is Spoofing Bad? by kasey_junk on Thursday April 23, 2015 @09:32AM (#9426509)
You are under the incorrect impression that providing liquidity means selling shares. Providing liquidity happens on either side of a trade. Market makers are full time liquidity providers offering to both buy and sell (usually at the same time). They make their money by bridging the temporal gaps in the supply/demand of an instrument.

So if you are using a liquidity providers it is evidence that you do not want to wait. If you did want to wait, you yourself can just put the order out and provide the liquidity to others.

[ Parent | on HN ]