market making on stocks

[moneymaking]

hi everybody !

is there a liquidity criterea to implement a market making algorithm on a stock ?

thanks in advance for your responses

 

[malaguti]

hi everybody !

is there a liquidity criterea to implement a market making algorithm on a stock ?

thanks in advance for your responses

whats wrong with the liquidity ratio that every company uses?

 

[moneymaking]

by liquidity ratio, do you mean float market cap turnover ?

 

[moneymaking]

my question is if you have a stock with a float market cap of 1.5B EUR and a yearly float market cap turnover of 25%, is it possible to make a market making strategy to increase this ratio to 32.5% with a limited loss of money ?

 

[malaguti]

a yearly float market cap turnover of 25%

a company that has just floated? or floated many years ago?

 

[moneymaking]

listed company for 10 years

 

[malaguti]

listed company for 10 years

so what do you mean by annual cap turnover of 25%

 

[moneymaking]

number of shares traded in a year / float number of shares = 25%

 

[malaguti]

number of shares traded in a year / float number of shares = 25%

I see you and I are talking different things
for me, liquidity ratio is a ratio of the time a company takes to raise capital to pay off its immediate creditor, it is the percentage difference of its current liquid assets and its current liabilities. It is a golden ratio in financial terms
You are talking liquidity in terms of how many shares are traded.