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Twenty per cent of your counterparties are informed and cost you $5$ cents a trade; the rest pay your two-cent half-spread. What informed share would take your net edge to zero? Give a decimal to four places.

Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.

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Reading the fill: adverse selection

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Jane Street, Optiver, SIG (Susquehanna), IMC Trading

Twenty per cent of your counterparties are informed and cost you 555 cents a trade; the rest pay your two-cent half-spread. What informed share would take your net edge to zero? Give a decimal to four places.

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Twenty per cent of your counterparties are informed and cost you $5$ cents a trade; the rest pay your two-cent half-spread. What informed share would take your net edge to zero? Give a decimal to four places.