Scalability in a market generally means that it can handle an increase in trading volume without a significant impact on efficiency, liquidity, or transaction costs.
In a scalable market, traders and investors can increase the size of their positions without dramatically affecting the bid-ask spread or experiencing slippage.
This is particularly important for institutional investors or traders who deal with large sums of money, as they need to be able to enter or exit positions without causing major price fluctuations. Scalability is often seen as a sign of a mature, well-functioning market.
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