market making on stocks

moneymaking

Newbie
5 0
hi everybody !

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

thanks in advance for your responses
 
M

member275544

0 0
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

Newbie
5 0
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 ?
 
M

member275544

0 0
a yearly float market cap turnover of 25%
a company that has just floated? or floated many years ago?
 
M

member275544

0 0
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.
 
 
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