Discussion Questions and Follow Up: (1) How would you decide what the appropriate bid/ask spread should...

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Discussion Questions and Follow Up: (1) How would you decide what the appropriate bid/ask spread should be when you submit your pair orders? Should this be dynamic or static? (2) What are the different ways you can alter your trading strategy, so that you keep submitting orders but attempt to balance your book? (3) Will market making strategies typically work in a trending market? Discussion Questions and Follow Up: (1) How would you decide what the appropriate bid/ask spread should be when you submit your pair orders? Should this be dynamic or static? (2) What are the different ways you can alter your trading strategy, so that you keep submitting orders but attempt to balance your book? (3) Will market making strategies typically work in a trending market?

Answer rating: 100% (QA)

1 Determining the Appropriate BidAsk Spread Deciding the appropriate bidask spread for submitting pair orders involves considering factors such as market conditions volatility liquidity and competitio... View the full answer