#交易对 selling price difference, such as designated market makers (DMMs) on the New York Stock Exchange providing liquidity for stocks.

2. High-Frequency Traders (HFTs)

◦ Utilize advanced algorithms and technology to quickly buy and sell assets, profiting from minor price fluctuations while increasing market depth and liquidity, as some quantitative hedge funds employ high-frequency trading strategies.

3. Large financial institutions and investors

◦ Banks, mutual funds, pension funds, and others conduct large-scale trading in the market, and their trading activities also provide a certain level of liquidity, but their trading decisions are typically based on long-term investment objectives and market analysis.

Five, Factors Affecting Trading Liquidity

1. The number and type of market participants

◦ The more participants and the more diverse the types, the higher the market liquidity. For example, the foreign exchange market has become one of the most liquid markets due to the participation of numerous banks, corporations, and individuals globally.

2. Characteristics of the assets

◦ Homogeneity of assets: standardized and homogeneous assets (such as gold futures contracts) have better liquidity due to ease of valuation and trading.

◦ Popularity and recognition of the assets: well-known company stocks