#交易流动性 IV. Main Sources of Liquidity (Continued)

• Bid-ask spreads, such as designated market makers (DMM) 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, etc., engage in large-scale trading in the market, and their trading activities also provide a certain level of liquidity, but