Liquidity, Reflexivity, and Market Structure

Modern liquidity is less a pool than a choreography. This note maps the interaction between passive flow, options positioning, and the feedback loops that make the market feel deeper—until it suddenly does not. Modern liquidity is less a pool than a choreography. This note maps the interaction between passive flow, options positioning, and the feedback loops that make the market feel deeper—until it suddenly does not.

The important question is not whether the system is changing, but which assumptions remain useful while it does.

The research archive is intentionally text-first. External references are linked rather than stored, preserving fast reads and modest database costs while keeping every source legible to the reader.

That constraint is not an aesthetic compromise. It is a discipline: preserve the argument, the date, the relevant model, and the source path; avoid turning a research archive into a media warehouse.