easy · Market Microstructure
A trader places a large buy order for 50,000 shares of a small-cap stock. Moments later, the price jumps by 2%. The price then stays at this new higher level for the rest of the day.
How would a microstructure analyst categorize this price move?
- Latency Arbitrage
- Temporary Market Impact
- Bid-Ask Bounce
- Permanent Market Impact
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