There is a large debate on this topic. The empirical results of previous literature showed that there is a strong relationship between these varables. Using OLS regressions we found that trade volume has a larger impact on daily volatility compared to the influence of number of transactions which...
2 Furthermore, the level of the transaction cost is used by exchanges and regulators as one of the criteria to judge market quality. However, to the best of our knowledge, there is no empirical literature on examining the price impact of large trades initiated by different types of traders....
Death and contagious infectious diseases: Impact of the COVID-19 virus on stock market returns. Journal of Behavioral and Experimental Finance (2020), p. 100326 View in ScopusGoogle Scholar Albulescu, 2020 C.T. Albulescu COVID-19 and the United States financial markets’ volatility Finance Resear...
In a span of just 15 years, cryptocurrencies emerged from obscurity to become an important part of financial markets. But there's one thing the industry's evolution hasn't eradicated: extreme volatility. At its peak in November 2021, the crypto market was worth upwards of $2.9 trillion. By...
Traders must also adjust their CCI entry and exit thresholds based on the volatility of the underlying security; for example, an indexexchange-traded fund(ETF) is traditionally less volatile than an individual stock issue. How Do You Use the Commodity Channel Index (CCI)?
Government bond markets trade Treasury securities that are crucial in setting benchmark interest rates. Corporate bond markets allow investors to trade in company debt, while municipal bond markets focus on state and local government debt. The MBS market trades in securities backed by pools of ...
Human activities widely exhibit a power-law distribution. Considering stock trading as a typical human activity in the financial domain, the first aim of this paper is to validate whether the well-known power-law distribution can be observed in this acti
assets based on the presence of a volatility forward skew in Bitcoin option data. Moreover, the Newton Raphson and Bisection methods are effective in estimating the implied volatility of Bitcoin options. However, the Newton Raphson forecasting technique converges faster than does the Bisection method....
currency. Sovereign risk refers to the chance that a foreign government may default on its debt. Additionally, political instability in the issuing country can impact its economy and lead to higher volatility in bond prices, as government policy influences the price (and therefore the yield) of ...
produce substantial returns to one'sportfolio. However, investors must be aware that all high returns must be judged within therisk-and-rewardframework. The challenge for investors is to find ways to cash in on an emerging market's growth while avoiding exposure to its volatility and other ...