> Making markets does not add any value to anyone other than the marketmakers and the stock exchanges.
Could you elaborate on this statement? It is my understanding that the value market markers provide is liquidity and tighter spreads. Worst case, they pull orders when informed volume is detected, but then the book is no worse off than what it would be if the market makers weren't there.
Could you elaborate on this statement? It is my understanding that the value market markers provide is liquidity and tighter spreads. Worst case, they pull orders when informed volume is detected, but then the book is no worse off than what it would be if the market makers weren't there.