Little’s Law is one of those equations that looks almost too simple to matter
L = λW
Average number of items in a system = arrival rate × average time spent in the system.
Suppose 100 items enter a system every second, and each remains inside for an average of 0.2 seconds.
On average, 20 items are in the system.
That relationship appears across surprisingly different kinds of queues from manufacturing to computing to telecommunications.
And it gives us a useful way to think about trading infrastructure.
When order flow increases, or when orders spend longer moving through a system, the amount of work inside that system increases.
The equation doesn’t predict price.
It doesn’t predict volatility.
It simply exposes something easy to overlook
Every system has to account for what enters, what leaves, and how long things remain inside.
Even complicated infrastructure eventually has to obey simple arithmetic.
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