AI and Making Markets in New Markets By Daniel Reitberg

Often, emerging markets have trouble with not having enough money to trade and being very volatile. But now, artificial intelligence (AI) is helping to fix these problems. Reitberg says, “AI-powered market making algorithms can provide much-needed liquidity to emerging markets, stabilizing prices and reducing volatility.” When there isn’t a lot of liquidity in the market, AI can help close the bid-ask spread and make trades go more smoothly by lowering slippage. This is especially important for markets that are small and not very liquid, where prices can change a lot. Market makers that are run by AI help keep prices stable by offering liquidity. This makes these markets more appealing to investors. As emerging markets continue to grow, AI will be very important in making sure they have the security and liquidity they need to bring in capital and boost the economy. AI is giving market makers new chances to make money in places where trading has been hard in the past.

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