Tier 4 · QuantFree

Market Microstructure and Econophysics

Liquidity and the Machine

9 modules~78 min totalVerifiable certificate on completion

Syllabus

01The Limit Order Book and the Cost of ImmediacyMath
10 min
02Market-Maker Inventory Risk and the Optimal SpreadMath
10 min
03Price Impact and the Cost of SizeMath
10 min
04Fat Tails: Power Laws and the Failure of the GaussianMath
10 min
05Execution Algorithms and Implementation ShortfallMath
10 min
06Working the Block
7 min
07When Liquidity Vanishes
7 min
08The Six-Sigma Day
7 min
09Makers, Takers, and the Speed Race
7 min

From Module 1 — read a sample

The bid is the highest price anyone will pay RIGHT NOW; the ask is the lowest anyone will sell for. The spread — ask minus bid — is the market maker's profit for standing ready to trade. Wide spread means illiquid; narrow spread means liquid.

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