Hello guys, the question is simple. I can see the order book, and even if i buy all the liquidity someone is deploying more and more, so.. who deploys the liquidity ? Second question, it is said that someone has to loose to someone win, but the point is, if someone is deploying liquidiy and all of us are buying the price will go up so... who loose?
Q1, what asset class are you asking about? There are liquidity providers in every asset class. Some are broker dealers, some are not. It depends on what you are trading. Q2, I don't believe trading is a zero sum game. You can make money on your trade and so can the counter party. Your trade might be simple while their trade will have a hedge.