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Keeping it Simple on the Road | Ep.8: Market-Making is Making Markets

Keeping it Simple with Simplify Asset Management

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The Importance of Liquidity in Trading

Harley: The very tight bid offers give the illusion of liquidity. You have this false sense of security, which I think you get rarer but larger surprises. We were doing an Amazon earnings trade where the earnings date was in question. And we would go out and spray the market with 5,000 each strike for our size to only get three to 500. So that liquidity when you see it as being like, oh, 50,000 up, it's just not true. They can take it away so fast that it just never was there.

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