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0 pointsbonestamp26y ago0 comments

> I also don't see any interest in making the stock prices change every nano second. A quote a day can be enough if you are an investor, not a speculator.

Well, there isn't any interest in it per se, but that is intrinsic to how fast we can make trades... Somebody offers the lowest sell price and somebody offers the highest buy price. The "value" constantly changes as those two highs and lows fluctuate based on who decides they'll sell for lower than the lowest offer or who decides they will buy for higher than the highest bid.

Unless you're saying that those offers/bids should only be accepted once/day and can't be changed until the next day? That's the only way I could forsee changing the quote once/day.

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jstanley6y ago

Even if you only update the order book once a day, you still need some way to decide which of 2 orders at the same price gets in front of the other, so people still have to compete on time, except now the prices are worse in both directions because market makers have to be able to commit to the price for the entire next day.

Iv6y ago

My proposal is to randomize the order at which orders arrive. Market makers are largely algorithms by now anyway.

Send orders all day, clear them once a day. Calculate the resulting quote.

Let go of the illusion that the real value of companies change every nano second. The fact that stock exchanges close at night and that for 12 hours, values don't change proves that it is not a necessity.

Having 12 hours instead than a few seconds to think about the impact of a given news on the stock market is going to give room to breath for actual investors.

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