Two of the most common indicators are open interest and volume useful in understanding the trading and market situation. While some might have come across the word open interest and volume, there are several misconceptions or misunderstandings on what they mean and how they work. They have an ...
trading volumevisibilityThis paper presents new evidence on why we observe striking differences in the percentage of trade in foreign markets for cross-listed stocks. With a large sample of Toronto Stock Exchange (TSX) stocks cross-listed in the U.S. and Canada, we document the effect of ...
Open Interest and Trading Volume are frequently used terms in the derivatives market, and amateur traders often mix them up. Volume is the amount of derivative contracts traded in a particular trading session. Whereas OI (Open Interest) is the number of outstanding derivative contracts in the ...
some order flow traders will separate the profile into 2 separate “D-areas” with their own value areas. This is where NinjaTrader’s Volume Profile Drawing Tool can come in extra handy, plotting custom profiles on the fly.
The daily volume traded of an ETF is often incorrectly used as a reference point for liquidity. An ETF’s liquidity is determined by the liquidity of the underlying securities whereas trading volume is influenced by the activity of investors. If an ETF invests in securities that have limited su...
Volume represents the total amount of trading activity or contracts that have changed hands in a given commodity market for a single trading day. The greater the amount of trading during a market session the higher will be the trading volume. As mentioned earlier, a higher volume bar on the ...
Adirect quote, also known as a “pricequotation,” expresses the price of a unit of foreign currency in terms of the domestic currency. An indirect currency quote, also known as a “volume quotation,” expresses the amount of foreign currency per unit of domestic currency. ...
1. Limited trading volume: In a scenario where a private company’s shares are rarely traded, the bid-ask spread may be significantly wide due to the lack of market activity and price discovery.2. High-growth startup: For a promising startup with strong growth potential, the bid-ask ...
Any of these factors, as well as large market orders, can cause volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.
Despite the temporary drop in the trading volume due to COVID-19, the Philippines has quickly recovered. Continuing its solid macroeconomic expansion, the country’s total external trade in goods amounted to US$19.35 billion in 2022, according to figures by the Philippine Statistics Authority. ...