Market Makers (Liquidity Providers) and the Bid-Ask Spread Explained in One Minute

Get Users Vids Relevant to Forex Algorithmic Trading Investopedia, Market Makers (Liquidity Providers) and the Bid-Ask Spread Explained in One Minute.

Market makers tend to oftentimes be surrounded by a bit of an aura of mysticism in light of the fact that other market participants consider them all-knowing entities who can do no wrong.

Is that the case?

Most definitely not. Instead, why not look at market makers as liquidity providers so as to see them for what they actually are: yet another market participant, with pros as well as cons associated with their status.

In approximately one minute, this video explains what market makers are, why the liquidity they provide tends to be quite useful and what the (in)famous bid-ask spread is all about.

If you are new to trading/investing, all of this terminology might seem confusing but in true One Minute Economics fashion, I’ve explained these concepts in a way that leaves little room for interpretation.

After watching this video, you will understand why market makers are important actors in the ecosystem (yes, for primarily liquidity-related reasons), why knowing a thing or two about the bid-ask spread is recommended and… well, why you should care 🙂

Forex Algorithmic Trading Investopedia, Market Makers (Liquidity Providers) and the Bid-Ask Spread Explained in One Minute.

Is Zerodha touch cost-free?

The Zerodha Touch Platform is presently cost-free to utilize for Zerodha Trading Account owners, during the testing phase. 5) For how long is Zerodha Touch Platform Free? The system is cost-free up until 31st March 2018. You can utilize upto 25 backtests and also 5 online algos a day.

Recommended Book for Automated Trading

Professional Automated Trading: Theory and Practice

Book by Eugene A. Durenard

An insider’s view of how to develop and operate an automated proprietary trading network Reflecting author Eugene Durenard’s extensive experience in this field, Professional Automated Trading offers valuable insights you won’t find anywhere else. read more…

Originally published: 2013
Author: Eugene A. Durenard

Basics of algo Trading: Concepts and also Examples

algo trading (also called computerized trading, black-box trading, or algo-trading) utilizes a computer program that adheres to a defined collection of guidelines (a formula) to position a profession. The profession, theoretically, can create revenues at a speed and also regularity that is impossible for a human investor.

The defined collections of guidelines are based on timing, price, quantity, or any kind of mathematical model. Besides revenue opportunities for the investor, algo-trading renders markets much more liquid and also trading much more systematic by ruling out the effect of human emotions on trading tasks.

algo Trading in Practice
Mean a trader adheres to these straightforward profession standards:

Buy 50 shares of a stock when its 50-day moving average exceeds the 200-day moving average. (A relocating average is approximately past information factors that ravels day-to-day price changes and also thereby identifies trends.).
Market shares of the stock when its 50-day moving average goes listed below the 200-day moving average.
Utilizing these two straightforward guidelines, a computer program will automatically check the stock price (and also the moving average signs) and also position the deal orders when the defined problems are satisfied. The investor no more requires to check online costs and also graphs or placed in the orders manually. The algo trading system does this automatically by properly recognizing the trading possibility.

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