Questions tagged [trading]
The trading tag has no usage guidance.
35
questions
0
votes
0
answers
18
views
Understanding the Formula For the Accumulation/Distribution
My understanding of the essence of the Accumulation/Distribution Index is that it tracks the closing price of a security during each period relative to its price range for that period, something like ...
0
votes
0
answers
22
views
Open Interest On Stocks
According to the first bullet point in this explanation, "In the stock market, open interest is the number of buy orders submitted before the market opens. When the open interest is high, people ...
0
votes
0
answers
11
views
Availability of shareholder structures
Is equity trading tracked centrally (by one or more institutions) in a way that one can always know and report the shareholder structure of any company that is traded on the stock exchange, possibly ...
2
votes
1
answer
47
views
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 ...
0
votes
0
answers
26
views
Momentum Indicators/Oscellators for Trading
The concept of momentum in trading is a bit weird to me.
It seems to me to be measuring a first derivative or first difference of price, or something in that ballpark depending on the exact formulae ...
1
vote
0
answers
25
views
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 ...
- 11
0
votes
0
answers
12
views
What are "low predictability" and "poor feedback" properties of stock investment?
Wood, 2010 meantioned that
Investing in stocks is a difficult task, with low predictability and
poor feedback
It seems that investing in stocks is a difficult task because of "low ...
- 931
0
votes
1
answer
37
views
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 ...
- 133
0
votes
0
answers
16
views
How to clarify "Predatory trading" process?
Brunnermeier, 2005 studied the "predatory trading"
This paper studies predatory trading, trading that induces and/or
exploits the need of other investors to reduce their positions. We
show ...
- 931
0
votes
1
answer
48
views
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 ...
- 931
1
vote
1
answer
97
views
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 ...
- 931
0
votes
0
answers
22
views
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?
1
vote
1
answer
118
views
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,...
- 759
1
vote
0
answers
14
views
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....
1
vote
1
answer
46
views
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 ...
- 175
1
vote
2
answers
51
views
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 ...
- 11
2
votes
1
answer
41
views
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 ...
11
votes
4
answers
3k
views
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 ...
- 111
0
votes
3
answers
33
views
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 ...
- 139
1
vote
0
answers
32
views
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?
- 111
1
vote
3
answers
163
views
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&...
- 11
0
votes
1
answer
25
views
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 ...
0
votes
0
answers
44
views
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} ...
1
vote
1
answer
30
views
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 ...
- 113
1
vote
1
answer
44
views
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 ...
- 11
1
vote
0
answers
21
views
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 ...
- 111
1
vote
1
answer
50
views
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)
...
- 117
0
votes
0
answers
61
views
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 ...
6
votes
1
answer
180
views
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. ...
- 61
0
votes
0
answers
12
views
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 ...
- 125
0
votes
1
answer
26
views
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 ...
- 3
0
votes
2
answers
80
views
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 ...
- 101
2
votes
2
answers
454
views
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 ...
- 123
24
votes
4
answers
9k
views
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, ...
- 343
10
votes
3
answers
3k
views
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 ...
