Comments on: What is Liquidity? (Part III) http://alephblog.com/2009/09/18/what-is-liquidity-part-iii/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Thu, 18 Mar 2010 20:53:26 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: David Merkel http://alephblog.com/2009/09/18/what-is-liquidity-part-iii/comment-page-1/#comment-23316 David Merkel Sat, 19 Sep 2009 04:28:42 +0000 http://alephblog.com/?p=2022#comment-23316 Limit orders that last longer offer more liquidity to the market than those that flash and disappear. That is all I am saying. If really short-term orders offer liquidity, it is very small, because the time to take advantage of it is short. But, I want to learn. Please point me to the pro-HFT writings that will truly instruct me. I would like to see the case, but I have not seen it anywhere. Limit orders that last longer offer more liquidity to the market than those that flash and disappear. That is all I am saying. If really short-term orders offer liquidity, it is very small, because the time to take advantage of it is short.

But, I want to learn. Please point me to the pro-HFT writings that will truly instruct me. I would like to see the case, but I have not seen it anywhere.

]]> By: JoshK http://alephblog.com/2009/09/18/what-is-liquidity-part-iii/comment-page-1/#comment-23314 JoshK Fri, 18 Sep 2009 16:52:56 +0000 http://alephblog.com/?p=2022#comment-23314 I generally enjoy your articles but believe that you have this one wrong. Market Makers are hi-frequency traders. The systems that execute orders for clients are also hi-frequency systems. Providing a bid for 100ms is useful to most of today's (equities/futures/fx) market participants. I generally enjoy your articles but believe that you have this one wrong. Market Makers are hi-frequency traders. The systems that execute orders for clients are also hi-frequency systems. Providing a bid for 100ms is useful to most of today’s (equities/futures/fx) market participants.

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