Intentionality and Decisions in markets
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A thought came to me today.
Can Buying and a Selling on an automated exchange be thought of as the matching of intentions and decisions in a market?
The execution of a ‘Buy’ is triggered when a person’s [i]immediate[/i] decision to buy is matched with someone else’s [i]prior[/i] decision to sell. The person buying in to the Sell order is making their decision in the present moment whereas the person making the Sell order had placed it there prior to the event’s occurrence.
Before making their decision the buyer reads the order book which lays out historical information on anonymous people’s decisions and is left to decide in private on how they should act. The buyer is left to speculate about their actual intentions behind the orders on the book which along with the media will inform her decision.
The seller’s apparent intention was visible leading up to the event, the buyer’s decision was only visible in the present and is only understood historically by the markets looking at the graphs once it is represented as price over time.
Conversely: the execution of a Sell order is triggered when a person’s immediate decision to sell is matched with someone else’s prior decision to buy.
Is it significant that this presents asymmetric information in the market? Does the time function play a significant role here? What are we really up to when we engage in these markets anyway?
These decisions should not be confused with intentions (some bids and asks are fake and designed to manipulate the market). Also price cannot necessarily correlate with beliefs since people can buy things they don’t believe in and their only motive could be to sell it for more later on and thus their true belief is in what they choose as final settlement.
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Well the “funny” part is immediate fear and recognition of bad short time trade.
I think everybody went through this, you pray for your buy order to be filled and than moment after it happen you realize somebody lucky just sold to your order and market is taking a dive :). Then you watch for a while, lose nerves and sold below your buying price. And the next day price shoot up and you are tempting to buy again.If you can analyze your own behavior you can actually choose if you lose or win.
My point is buy during panic dives and be happy. Just take others money and be happy ;) -
If the object is tagged in the blockchain, say a RFI. You could then prove you owned the object, even if the person you bought it from did not deliver it.
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[quote name=“chrisj” post=“48955” timestamp=“1388610438”]
A thought came to me today.Can Buying and a Selling on an automated exchange be thought of as the matching of intentions and decisions in a market?
The execution of a ‘Buy’ is triggered when a person’s [i]immediate[/i] decision to buy is matched with someone else’s [i]prior[/i] decision to sell. The person buying in to the Sell order is making their decision in the present moment whereas the person making the Sell order had placed it there prior to the event’s occurrence.
Before making their decision the buyer reads the order book which lays out historical information on anonymous people’s decisions and is left to decide in private on how they should act. The buyer is left to speculate about their actual intentions behind the orders on the book which along with the media will inform her decision.
The seller’s apparent intention was visible leading up to the event, the buyer’s decision was only visible in the present and is only understood historically by the markets looking at the graphs once it is represented as price over time.
Conversely: the execution of a Sell order is triggered when a person’s immediate decision to sell is matched with someone else’s prior decision to buy.
Is it significant that this presents asymmetric information in the market? Does the time function play a significant role here? What are we really up to when we engage in these markets anyway?
These decisions should not be confused with intentions (some bids and asks are fake and designed to manipulate the market). Also price cannot necessarily correlate with beliefs since people can buy things they don’t believe in and their only motive could be to sell it for more later on and thus their true belief is in what they choose as final settlement.
[/quote]Both buyers and sellers have histories (two sides of the pinch trade in the middle). Both buyers and sellers also have immediate action. Both exist in both contexts. Prices are virtual indicators, between potential and actual. This is why FLUX exchanges “images” of currencies. Once the pathways have been locked in, then the “real” currencies are traded, but are only valid if they go over those pathways. This de-constipates the exchange process.
