Trade prices.Prices from transactions that the dealer has done are used; the trader reprices his or her own portfolio. There is a regulatory trend toward using “real” prices when it comes to risk and valuation. Simultaneously, more “real” prices are available due to regulatory initiatives ...
As one Bear Stearns trader put it, “Plywood was dead, so we looked around for some better action and found it in oil.” The low internal cost of capital for margin maintenance and a built-in trading infrastructure made these new entrants formidable competitors for the older oil trading and...
New business recorded growth after eighth months of declines and as report states on inflation “Service providers are still in a position to pass on at least some of the rise in input costs to customers in the form of higher prices. In March, however, the pace of inflation slowed slightly...
If a trader wants to interact with the exchange, he/she has to go through a broker [1]. The trading process begins with the trader initiating the trade. The trader sends an order to the broker. Once the order has been placed, the broker is responsible for the order’s execution. If ...
In addition, understanding the nuances of volume changes helps assess the robustness of price levels and the potential for future volatility. As such, interpreting volume should be in every futures trader's arsenal since it helps identify prospects and manage risk. ...
Attribution of the variation with P&L to various risk factors (changes in rates, equity prices, and so on) can then be tested for correspondence with the bank's ingoing hypothesis on risk sensitivities. A good decomposition can also better ensure that a given trader's positions genuinely ...
If markets are truly efficient, then there is no hope to beat the market as an investor or trader. The EMH states that no single investor is ever able to attain greater profitability than another with the same amount of invested funds under the efficient market hypothesis. Since they both ha...
This isthe most important stepthat a trader can go through to prove that their trading strategy actually works. Yet, so many aspiring traders miss this vital step. The best part about backtesting is that you don't necessarily need to know how to code to backtest. ...
If you’re a bipolar trader, you know that managing your condition and your investments can be a difficult balancing act.Beating depression for bipolar traderscan be double the hard but manageable. Here are a few tips that can help you stay on top of your game: ...
Market microstructure deals with the purest form of financial intermediation – the trading of a financial asset, such as a stock or a bond. In a trading market, assets are not transformed (as they are, for example, by banks that transform deposits into loans) but are simply transferred from...