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Does El-Erian use "[http://www.reuters.com/article/2015/02/17/investing-allianz-el-erian-idUSL1N0VR0NS20150217 illusion of liquidity]" to indicate the same issues about which some have used "Cheshire multiple" (see [[Talk:Efficient-market_hypothesis#Cheshire_multiple|Efficient-market hypothesis]])? Under the current setup, most are losers, by definition; yet, this does not come into the discussion (sustainability, for example). [[User:JMSwtlk|jmswtlk]] ([[User talk:JMSwtlk|talk]]) 14:29, 18 February 2015 (UTC)
Does El-Erian use "[http://www.reuters.com/article/2015/02/17/investing-allianz-el-erian-idUSL1N0VR0NS20150217 illusion of liquidity]" to indicate the same issues about which some have used "Cheshire multiple" (see [[Talk:Efficient-market_hypothesis#Cheshire_multiple|Efficient-market hypothesis]])? Under the current setup, most are losers, by definition; yet, this does not come into the discussion (sustainability, for example). [[User:JMSwtlk|jmswtlk]] ([[User talk:JMSwtlk|talk]]) 14:29, 18 February 2015 (UTC)

==Market makers and price anticipation==
Market makers do not "seek (primarily) to profit from anticipated increases or decreases in a particular market price". That is the role of speculators. Market makers seek to profit from a combination of the demand for immediacy (others trading against the market-makers passive quotes at the bid & ask) and generally benefit from a *lack* of price changes. (Volatile markets can be very profitable for market-makers, but this is a result of increased volumes and other market participants valuing immediacy higher, i.e. crossing spreads more readily and trading with more urgency.)

I am accordingly adjusting the description in the "Overview" paragraph in line with the above. [[User:Afekz|Afekz]] ([[User talk:Afekz|talk]]) 11:27, 6 October 2015 (UTC)

Revision as of 11:27, 6 October 2015

Cheshire multiple

Does El-Erian use "illusion of liquidity" to indicate the same issues about which some have used "Cheshire multiple" (see Efficient-market hypothesis)? Under the current setup, most are losers, by definition; yet, this does not come into the discussion (sustainability, for example). jmswtlk (talk) 14:29, 18 February 2015 (UTC)[reply]

Market makers and price anticipation

Market makers do not "seek (primarily) to profit from anticipated increases or decreases in a particular market price". That is the role of speculators. Market makers seek to profit from a combination of the demand for immediacy (others trading against the market-makers passive quotes at the bid & ask) and generally benefit from a *lack* of price changes. (Volatile markets can be very profitable for market-makers, but this is a result of increased volumes and other market participants valuing immediacy higher, i.e. crossing spreads more readily and trading with more urgency.)

I am accordingly adjusting the description in the "Overview" paragraph in line with the above. Afekz (talk) 11:27, 6 October 2015 (UTC)[reply]