market-making

1 free lesson tagged market-making across Business. Each one is a short sequence of focused steps with narration and a five-question quiz at the end — take them in any order, no signup required.

Business

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Why a Spread Exists at All

Competition should compress the bid-ask spread to nothing, and it does not. The reason is not fees or greed: a spread survives even when trading is free and the quoting participant expects zero profit. This lesson builds the adverse selection argument, then shows how to measure which part of a spread is information and which part is rent.

9 steps·~14 min

Why a Spread Exists at All

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