Interview
A market maker on liquidity in thin hours
Same coin, same size, different hour: the gap in execution is wider than most private investors expect. We asked a market maker how it works.
In conversation with
Peter Roosens — Marktmaker, Europese handelsfirma
The order book breathes with the clock
Liquidity is not a property of a coin but of a moment. In the early European morning less capital sits on both sides of the book, so the same order walks further through the prices.
Depth returns around the US open. Anyone without urgency literally pays less by waiting.
Relative depth per part of the day
Editorial illustration based on market observation, not a measurement.
- European morning45%
- European afternoon70%
- US open100%
- Weekend35%
Largest outliers
What a market maker does when it thins out
With low depth a market maker widens the quote. That is risk management rather than opportunism: the chance of being stuck with a position while prices move is simply higher.
When a large participant steps away, part of the book disappears and the widening accelerates. That explains the sudden spikes retail users see on a chart.
What this means for private investors
Pushing a large amount through the market at once pays the full difference. Spreading across the day, or simply avoiding thin hours, is the cheapest optimisation available.
Limit orders help too: they stop an order from sliding through an empty book.
- Avoid early mornings and weekends for large orders
- Split large amounts into parts
- Use limit orders instead of market orders
Frequently asked questions
Is a wide spread a sign of a bad platform?
Not necessarily. It often reflects the moment and the depth of the book rather than the provider alone.
Does splitting always help?
For large amounts almost always; for small orders fixed costs outweigh the gain.
About the author
Wouter volgt macro-economie, rentebeleid en edelmetalen. Hij verbindt centralebankbeslissingen met wat er op de crypto- en goudmarkt gebeurt.