Informed and uninformed traders
Mar 05, 2018 · Liquidity traders provide liquidity to the market. They buy from anyone willing to sell at slightly less than the mid price, and sell to anyone willing to buy for slightly more than the mid price. In quiet markets, they earn a small spread on each (PDF) Informed and uninformed traders at work: evidence ... The impact that informed and uninformed agents have on market prices is crucial for informational issues in financial markets. Informed trades are associated with institutional operators while