Simulate the situation. If 1,000 people were forced to trade amongst themselves, how would the graph behave? - page 4
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yes, if there is a benefit algorithm, and under certain conditions. For example, the asset is boxes, the currency is roubles. Each participant has 100 boxes and 100 roubles. Each participant understands that the value of 1 box = 1 rouble. He will put an order into the glass to buy at 0.5 roubles or sell at 2 roubles. He understands that buying boxes at 0.5 roubles is generally profitable, but why not to sell at 2 roubles would be profitable for him, other operations are not profitable for him. Every participant will make such bids and no one in the market will buy/sell, because there is no profit in it.
If the transactions are random, then it's fine, or if the issuer of the boxes is the same.
Without market maker(s) there will be no market, so the chart will be determined by its algorithm.
That's what it's all about.
here's the cryptocurrency market perfect. only if there was no issuance.
I thought about it, there is bitcoin issuance data, you can find almost real time and cut that issuance out of the graph, but there is also the influx of participants.... i haven't figured out how to cut it out.
Without market maker(s) there will be no market, so the chart will be determined by its algorithm.
All the money will end up at the exchange. Spread, swap will eventually eat up a significant amount of the total deposit
I understand that, but it's a perfect market, with no exchange commission.
Why not? Participants will sell to each other.
And they are likely to stagnate.
So what? How do they trade shares on the Moscow Stock Exchange? No one has the asset either.
A man puts an order into the betting market: I want to buy an asset at such a price.
Then they close their positions after some time (i.e. they make opposite deals with each other or with other market participants).
PJSCs go public, i.e. the shares may already be held by a large number of shareholders or, for example, they were bought up before the flotation at a lower price than the flotation occurred, then the asset will start to subside at the opening of trading because of the sell-off.
It is therefore important to determine what kind of asset it is and whether others have it at the start of this game or whether it is unique.
All the money will end up with the exchange. Spread, swap will end up eating up a significant amount of the total deposit
But this is an experiment with no spreads, swaps or commissions.
Why not? bidders will sell to each other.
Without market makers, there will be no price flow, but something like an occasional auction.
the first bidder who wants to trade and first comes up with a price for the asset. and puts the bid in the cup. the others will catch up.
again, if the decision-making mechanism is random, then yes, a participant will put up a random bid at a random price and someone will buy it back at random.
But no one will buy a new asset on the real market at an inadequate price. So the bids have to start moving in the cup until someone decides it is profitable for them and goes in the market.
when the IPO is done how the initial price of the asset is put up, does anyone know? it might help