With increasing spreads for shares of the target, a small Australian fund manager believes the front running the market-makers by posting your quotes inside spread. Organized in a series of rounds, it asks students to messages of supply and demand limit orders for stocks. Each round of orders allows you to come running in a limit order book, cash flow and the end of the round stock to be calculated, and the market to reconsider the purchase and sale of quotas for the next round. This structure dramatically illustrates the tension for market makers spreads between profit and inventory uncertainty trade. "Hide
by Michael J. Schill Source: Darden School of Business 2 pages. Publication Date: June 7, 2011. Prod. #: UV5649-PDF-ENG