Participants and Objectives
Participants trade for different reasons: investment, hedging, liquidity, arbitrage, dealing, market making, or agency execution. The same action can be rational under one objective and harmful under another.
Central questions
- Who needs immediacy and who can wait?
- Which risks and constraints shape each participant’s orders?
- Why should observable order flow not be assigned one universal motive?
Planned model
Give participants different values, deadlines, inventories, and information. Show how their chosen orders change as those constraints change.