1. Provide liquidity: the initiator of the trading system provides liquidity for the market by buying and selling financial products. Liquidity is an important feature of financial market, which helps the market to complete asset pricing and trading more efficiently.
2. Risk management: The initiator of the trading system needs to effectively manage market risks to reduce potential losses in the trading process. This includes setting stop-loss points and adjusting positions to cope with market uncertainty and volatility.
3. Price discovery: The initiator of the trading system contributes to the formation and adjustment of market prices through continuous quotation and trading. Market price is an important embodiment of the value of financial products, which helps market participants to judge the value of financial products more accurately.
4. Improve the transaction efficiency: The initiator of the trading system can greatly improve the transaction efficiency and reduce the transaction cost by using computer algorithms and automated trading technology. This helps market participants to complete transactions faster and improve the overall operating efficiency of financial markets.
5. Promote market fairness: In the process of trading, the initiator of the trading system needs to abide by market rules and regulatory requirements to ensure fair and transparent market. This will help protect the interests of investors and maintain the stability and healthy development of the financial market.
To sum up, the initiator of the trading system plays a key role in financial market transactions and has made important contributions to providing liquidity, risk management, price discovery, improving trading efficiency and promoting market fairness.