Market efficiency and Market taker: Difference between pages

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imported>Doug Williamson
(Create the page. Source: ACT Glossary of Terms)
 
imported>Doug Williamson
(Create the page to align with qualifications material.)
 
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1.  
A 'market taker' is the customer of a market maker.<br />
 
The market taker suffers the worse side of the two-way prices quoted by the market maker.<br />
Market conditions under which arbitrage opportunities have been eliminated.
This compensates the market maker for their risk, skill and expenses in making a market.
 
 
2.
 
The minimisation of transaction costs in the market.
 


==See also==
==See also==
* [[Arbitrage]]
*[[Market maker]]
* [[Efficient market hypothesis]]
 
[[Category:Context_of_treasury]]

Revision as of 09:35, 30 May 2015

A 'market taker' is the customer of a market maker.
The market taker suffers the worse side of the two-way prices quoted by the market maker.
This compensates the market maker for their risk, skill and expenses in making a market.

See also