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Trading and Exchanges: Market Microstructure for Practitioners. Larry Harris. http://www.amazon.com/Trading-Exchanges-Market-Microstructur...

This does a really good job of explaining how having people fulfilling different roles viz trader, dealer, investor results in being able to buy and sell whatever you want whenever you want. I wish I could send a copy to everyone who thinks flipping second-hand goods on Craigslist is arbitrage.





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