Posted by rr smith on February 10, 2002 at 12:06:06:
More buyers (AND MORE SELLERS) will lead to a more efficient market overall, no matter what “commodity” is being exchanged (wheat, currency futures, homes, etc). You have stumbled onto one of the best agruments for middlemen, i.e. they make for a more efficient market and help REDUCE RISK by those who do not want to assume risk. Higher risk in investing almost always leads to higher gross returns (or demands higher returns to attract investors).