Orange Juice Trade - Trading Places

What Hacker News said

Recommends thisisit · 2017-06 · on “Official Response to “Bancor Is Flawed””

If there was a bad response to a critic, this will be it. While Sirer's post was a bit terse, this response doesn't earn brownie points by going the same route. First, they start off as many "responses" in crypto currency seem to start that is - saying this is all FUD and the critic should stop spreading FUD. They also take the Trump route, not a great choice of words - "fake news". Where I lost them was when they equated themselves as being so important to crypto currency space that critiquing them can be used to tag the whole space as being a giant ponzi scheme. On still persisting, I found their clarification on "asynchronous price discovery" very funny. The point of a market making algo

Recommends thisisit · 2017-06 · on “Official Response to “Bancor Is Flawed””

This is the very basic function of a market maker. They offer to "make" a market even when none exists. So if everyone wants to buy they will keep offering until their inventory runs out. I haven't read the Bancor paper or code so I am not sure if this is implemented but every market maker's another objective is to make money. So they normally don't trade on a fair price, rather fair price - x/2 to buy and fair price + x/2 to sell where x is the spread to collect money. So effectively they buy low and sell high for a minute difference. As for a scenario where they have only buyers, the algos or people on the floor tend to take stock of the existing orders and start moving the ask higher to c

Recommends bmmayer1 · 2021-05 · on “Trading Pit Hand Signals”

This is still the best (Hollywood quality) depiction of what the trading pit looked like in reality. Trading Places, 1983: [this video]