👉 Broker math is a mathematical framework used to analyze and optimize trading strategies, particularly in markets with multiple liquidity providers. It involves calculating the expected returns of a portfolio by considering the bid-ask spreads and the costs associated with trading, such as slippage and transaction fees. The core idea is to determine the optimal price at which to execute trades, balancing the benefits of capturing small price movements with the costs of executing those trades. By using broker math, traders can minimize their overall costs and maximize profits, effectively "brokering" the best prices for their trades. This approach is especially valuable in markets with fragmented liquidity, where traditional pricing models may not fully capture the complexities of trading dynamics.
