I’m in my 30s and don’t understand how a market is “made.”
Discussion
Kind of like how babies are made.
Two people get together (in this case institutions) and provide a way of entering and exiting a market, without any friction, and a ton of liquidity. :)
make thing
add price
someone buy
has market
yes, really is that retarded
If I sent you 1 bitcoin and you sent me a check for 40k…would that have an effect on the market?
Not liquid enough. If there’s hundreds more people trading with each other multiple times it would be enough to move price
market maker
noun
A person or company who undertakes to quote at all times both a buy and a sell price for a financial instrument.
yes in trader bro speak
market etymology:
> The god Mercurius was probably the god of exchange… the god's name was borrowed from Etruscan; in principle, the same is possible for the stem *merk- altogether…
> early 12c., "a meeting at a fixed time for buying and selling livestock and provisions, an occasion on which goods are publicly exposed for sale and buyers assemble to purchase
it's where people sell to sock puppets to persuade people to start trading
It’s an illusion of made up rules and definitions
IIUC, when someone “makes a market” they make a credible offer to buy or sell something, presumably more than once.
So in The Big Short, when Jared says to Vinny, “you want me to make you a market?” what he’s asking is whether Vinny wants to buy what Jared is trying to sell for the first time (credit default swaps).
In an exchange context, when you place a limit order to buy or sell, you’re called the market “maker”. Your counterpart, who fills the order, is the market “taker”.
Markets uh find a way.
A market is made by use of order books. On exchange there are people who bid and ask. Bid means they place a bid to buy at x price. Ask is a sell at Y price. Since there's a disparity between the bids and ask, those orders sit on the books until someone takes the other side.
The intersection of the bids/asks is the spot price. A market is "made" when a market maker places bids/asks onto the order books. They literally create a market for purchases or sales by placing orders on the order book. Usually a market maker is employed by the exchange to keep volatility in check. The market maker will also take the opposite side of a "market buy/sell" (purchase/sell at spot price).
Depending on what you mean by "market" will depend on how its "made" define your terms
In regards of binary intelligence, creating market awareness was the first step towards market making, as something truly new under the sun. So how do you create awareness of something believed fictional yet to create a market for?
#mainvolume 
Closing the impossible, it ain’t easy, I’ll tell you that.