Questions tagged [trading]
The trading tag has no usage guidance.
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Is there a type financial instrument that can realistically increase its value 100 fold
Is there a type of financial instrument with extreme volatility, which could realistically grow in value by 10 000% over less than a year? If there isn't one that's commonly traded, could I craft one ...
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What, quantitatively, is the problem with treating two conceptually nearby trading indicators as independent pieces of evidence?
Suppose you come across a financial trading system which starts by checking a security's 200-Period Moving Average, either by itself or in conjunction with the security's price data, perhaps signaling ...
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Virtual trading on real commodity price
Today my friend told his idea. He said he would create "game" platform where people can buy & sell "virtual coin" that follows real world commodity price, but have no intrinsic ...
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How do issuers of commodity (eg. oil) futures contracts not continually lose money when the futures curve is in backwardation?
How do issuers of commodity (eg. oil) futures contracts not just continually lose money when the futures curve is in persistent backwardation (noting that the oil futures curve has been in ...
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How would one arbitrage a mispricing in interest rates and forex rates?
If you have a Japanese bond with a return of 2%, and an American bond paying 5%, but both current and forward exchange rates are 100 yen to 1 usd, how would one take advantage of this opportunity to ...
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How initial price of a token is determined on a centralized exchange?
Hypothetically, If I create tokens, I can create liquidity pool in one of the DEXes by adding, for instance, 1000 tokens and 1000 USDT. So the initial price of one token in this DEX will be 1 USDT. ...
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Why is equity trading an active contribution to the development and growth of economy?
How can one explain in a few words why equity trading is an active contribution to the development and growth of economy?
At first sight it seems counter-intuitive (for the layman): Buying newly ...
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Information Asymmetry in capital markets: EU ad-hoc announcements/8-K filings in other countries
In many countries, companies whose securities are traded on a stock exchange are subject to an ad-hoc disclosure requirement. This ad-hoc announcement publication duty refers to the obligation to ...
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Why do derivative contracts represent no wealth?
I am currently reading "Market Microstructure" by Larry Harris and I'm new to Finance and Economics world.
In the section about Magnitude of Trading (ch 3.4.1 p. 45) Larry Harris says that ...
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Why we say "active investing puzzle" while we already know the reason?
Han,2021 describe active investing puzzle as:
Notably, individual investors trade actively and have invested in
active investment funds for decades, and they thereby have on average
underperformed ...
- 1,090
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Is there any source talking about some stock behave similar to Gamestop from 12/2020 to 2/2021?
From 12/2020 to 2/2021 is the time that the price of Gamestop stocks drastically increases. I am wondering is there any US stock that also behaves the same (incidental increase) during this time ...
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Are short squeezes becoming more common, and if so, why?
This year I have read about short squeezes more often than any time in the past. Are short squeezes becoming more common, and if so, why?
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476
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Uniform price vs. pay-as-bid auctions in energy markets
These two types of auctions are most commonly used in the energy trading markets. What would be advantages and disadvantages of each? And in the end, can we expect them to deliver similar outcome?
One,...
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Does the SEC have the list or definition of indexes that an ETF is allowed to track to be classified as an Index-Based ETF?
The SEC Investor Bulletin on Exchange-Traded Funds (ETFs) (mirror) divides ETFs into two classes: Index-Based ETFs and Actively Managed ETFs. As its name indicates, index-Based ETFs track some indexes....
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European Commission getting rid of excess carbon emission permits
According to this Economist article,
For a long time after it was launched in 2005, the [European Trading System] barely functioned; a glut of allowances (which give the holder the right to emit an ...
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If you simply "copy" the trades of a professional trader, but with less money, isn't that *guaranteed* profits?
I keep coming back to this thought:
I just don't understand the complex "rules" or "patterns" of how the prices of Bitcoin (or any financial instrument) move up and down, so I will ...
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Why would using real-time settlements have helped combat some of the chaos that occurred during the January 2021 GameStop saga?
I read on cnbc.com (mirror):
Tenev also advocated for real-time settlement instead of two-day settlement in order to help combat some of the chaos that occurred during the GameStop saga.
Why would ...
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Are financial markets "unique" for each "currency pair", or are they simply "translated"?
This is something I've been long wondering about.
Let's say that I have statistics showing the daily closing Bitcoin price in USD since early 2009. Great. Now, if I wanted to get the daily closing ...
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Do leverage pools force net negative outcomes? How are leveraged futures profits payed?
Pre-note: Although I am trying to make this question general, in the case that there are any ambiguities, I would like to direct this question toward cryptocurrency futures trading platforms that ...
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What is the intuition for the potential loss of market makers on LS-LSMR?
What risk do liquidity providers take on when they provide liquidity to an LS-LSMR automated market maker pool?
How much can they lose?
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What is the correct way of calculating the "average" price based on the "Open,High,Low,Close" daily trade fields?
Open,High,Low,Close
I have these fields, representing the "opening" amount, the highest for the day, the lowest for the day, and what it closed at.
I'm trying to determine the "average&...
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Why might it make sense to buy bonds in a company facing restructuring?
In this video, Sal Khan states, "If you really thought that Lehman Brothers in the long term was going to come back, what you might want to do is somehow try to become one of its bondholders, and ...
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How can I represent this observation regarding options in a formula?
By observing how an option's expiration P/L changes as its underlying asset price changes, we can discover the following system of equations:
$\begin{cases}S_{Long} = C_{Long} + P_{Short} \\ S_{Short} ...
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Why would oil suppliers choose a lower priced contract?
The West Texas Intermediate (WTI) futures contract has ranged from \$6 to \$20 in the last 48 hours. The May Shanghai International futures contract is 205 Yuan (CNY). At 7 CNY per USD, that comes ...
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Uniform price vs discriminatory price double auction
Uniform price and discriminatory price double auctions are the most commonly used auction mechanisms in the trading markets especially in peer-to-peer energy trading markets. However, I could not find ...
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Continuous trading economies
Continuous trading economies. I see this expression in many papers but I do not know what it means in the precise technical sense. And I'm not an economist.
Maybe it could refer to an economic ...
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Banks providing loans
Banks are providing loans.
While granting a loan two scenarios can take place
The Loan is repaid
The Loan is not-repaid
The benefit from a re-payed loan is small profit. (Let's say 5% in general)
...
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what is exactly total bid quantity and total ask quantity?
this is the definition formulated by me:
Quantity total bid: It’s the sum of currently open (remaining untraded and active) orders on the bid side.
Quantity total ask: It’s the sum of currently open ...
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Optimal price function: application of calculus of variations
The problem, I am trying to solve is based on the paper by Rochet and Vila 1994 (see literature below). In fact, it is a variant of the seminal paper of Kyle 1985 in the finance/economics literature. ...
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Commonly used indicators for currency pair strength?
I am attempting to write a program in Python that monitors a single currency pair, GPB/NZD to be specific. My main focus will be to run constant calculations every 2 to 3 minutes in order to give ...
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Is it possible for shareholders to get a companies assets in place of currency?
To my knowledge being a shareholder is owning a portion of a company. Then by that logic shouldn't a shareholder be able to request a companies assets instead of money? As an example, if I own 100 ...
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Are there internationally published sources of trade sanctions?
How to implement embargoes with respect to a trading company?
Let's assume i am a small trading agent which assists and guides small exporters and importers while keeping embargoes and light ...
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How is bartering (goods for goods) conceptually related to trading (goods for money) and monetary (money for money) exchange?
My terminology may be off on this one but I can't get a definitive answer on how the above are related. To me, it seems like bartering is a superset of trading which is itself a superset of monetary ...
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Why is bartering uncommon in modern countries?
Recently, I witnessed two acquaintances of mine engaging in bartering, where one traded his services for the services of the other. Both services had about the same value. By trading them directly, ...
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How is it possible that all currency exchange rates are fixed w.r.t. to each other?
I wondered if it would be beneficial to exchange a currency through one or more "in-between" currencies.
For example: instead of trading Russian Ruble (RUB) to Euro's (EUR), one would trade from RUB ...
