a passionate follower of market structure who recently retired from TIAA-CREF, where he is still active part-time; Fred Federspiel of Pipeline Trading; Bob Gauvain, director of trading at Pioneer Investments; Oscar Onyema of the American Stock Exchange; and, finally, Dan Shaffer, who is the ...
Explain the trade-off a firm faces between high liquidity and low liquidity levels. LIQUIDITY: The business's liquidity refers to how the business is able to retain and manage its money for upcoming transactions in both short and long term. The low liqu...
A common objection to investing in an immediate annuity is the loss of liquidity. The idea of laying out a substantial amount of capital and not being able to access it again, spooks some annuity buyers.Many insurance companies that issue immediate annuities have come up with a way to ...
Liquidity is negatively influenced by the level of indebtedness of owners and potential buyers of an asset Liquidity is negatively influenced by similarity of trading strategies?of owners and potential buyers of an asset Presently, we have a lot of commentary about how the bond market is supposedly...
On the flip side, low liquidity can lead to higher spreads and increased slippage.The Importance of Liquidity in Forex TradingThe spread is the difference between the bid (buy) and ask (sell) price of a currency pair. In a highly liquid market, the spread tends to be tight because there...
Your home’s equity can provide you with financial flexibility and liquidity when you need it the most.— Linda Bell, Senior Writer, Bankrate What not to do with home equity Your home is an asset. So if you’re going to tap its value, you should make the money work for you in some...
for the parents' retirement, those are different goals. With an investment policy statement, "you know that the portfolio you're investing in for the children has a very long time frame before any liquidity is required, whereas for the parents, they might need it within 10 years," Hart...
A core liquidity provider is a financial institution that acts as a go-between in the securities markets. These institutions buy large volumes of securities from the companies that issue them and then distribute them in batches to financial firms, which will make them available directly to retail ...
The bid-ask spread is the de facto measure of market liquidity. Investopedia / Zoe Hansen Understanding Bid-Ask Spreads A security's price is the market's perception of its value at any given point in time and is unique. To understand why there is a "bid" and an "ask," one must fac...
Taking advantage of a longer time frame, the swing trader will sometimes hold positions for a couple of hours—maybe even days or longer—in order to call a turn in the market. Unlike a day trader, the swing trader is looking to profit from an entry into the market, hoping the change ...