Questions tagged [trading]

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24
votes
4answers
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, ...
10
votes
3answers
2k 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 ...
6
votes
1answer
131 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. ...
2
votes
2answers
448 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 ...
1
vote
1answer
29 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 ...
1
vote
1answer
47 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) ...
1
vote
0answers
19 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 ...
0
votes
1answer
22 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
0answers
38 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} ...
0
votes
0answers
13 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 find ...
0
votes
0answers
31 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 ...
0
votes
0answers
10 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 ...
0
votes
1answer
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 ...
0
votes
2answers
52 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 ...