Market Microstructure : A Proxy for Assessing Policy-Making, Regulation, and Market Movement on a Spectrum of Scales
Abstract
Behind the scenes of how a market price is determined, there is a lot going on in the background with how the sell side packages and distributes liquidity to the clients on the buy side. Market prices are believed to exist in two states: efficient and inefficient. It is said that price movements spend roughly 80% of the time in range bound conditions. For instance, if the bid/ask spread is adjusted ever so slightly, this can cause price to “slip” and move inefficiently. It is important to understand the two different states, especially when the market is in rhythmic states of dealing, and to observe the way inefficient moves are reflected on a chart. Studying market microstructure should provide more insight into what is going on in the background of price movements and why price moves the way it does. I’m particularly interested in how the algorithms collectively compound a price movement, when considering the plethora of independent liquidity providers that exist. While current research might not fully explain this idea, studying market microstructure should provide a framework for what’s occurring in the background.
Collections
Related items
Showing items related by title, author, creator and subject.
-
Letting People Know... How to Efficiently Market a Product: Marketing Strategy vs. Marketing Plan
Guldan, Matthew R. (2010)Over the course of the last four months, from June 2010 to September 2010, I conducted a marketing and research internship with my dad's newly emerging company, Waste Water Heat Transfer Systems, also known as 'W2HTS'. ... -
"Marketing Shirts Marketing Bars" : A Low Budget Marketing Plan for a Chicago Microbusiness
Vasilion, Gregory W. (2016)This SIP is a marketing plan for BarTees, a small marketing offshoot project of Bandwidth Marketing, a small creative agency in Chicago. The objective of BarTees is to provide a creative, low-cost, word-of-mouth marketing ... -
Mingas, Markets and Modernization: An Examination of the Effects of Market Orientation on the Traditional Labor Form in an Andean Community
Sanchez, Monica C. (Kalamazoo, Mich. : Kalamazoo College., 1996)The fieldwork for this project was completed during an 11 week period in the fall of 1996. During this time I lived with an indigenous family in the community of Peguche and participated with the neighboring community ...