Clarifying the murky language of liquidity
Campbell Adams, founder of the Pure initiative that now operates as ParFX, has a grudge against misnomers
Misnomers are words that suggest a meaning while knowing it is wrong. Such linguistic blunders arise because something is named long before its correct nature is known or because the nature of an earlier form is no longer the norm. An adult telling a child that a lion is an elephant – that’s a misnomer.
Calling a firm that recycles prices a liquidity provider, I would argue, is also a misnomer. Foreign exchange markets are littered with bad terminology, such as non-firm liquidity, which is not
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