Originality/value - The paper illuminates the effects of bounded rationality, imperfect information, and fragmentation of decision making on the behavior of markets. Models which assume, at least implicitly, that decision makers understand the structure of the market and how it produces the dynamics ...
“The market reaction is wrong: lowering the cost of AI will expand the market,” he said in a LinkedIn post. “DeepSeek is an incredible piece of engineering that will usher in greater adoption of AI.” Nvidia became the world’s most valuable company last year as investors bet on Big...
The concept of liquidity in ETFs extends beyond the traditional understanding applied to individual stocks. It is a multitiered framework involving both the dealer and secondary markets. In the primary or dealer market, liquidity is facilitated through thecreation and redemptionmechanisms. This unique p...
A strong founder-leader can take radical decisions to make sure change happens. This is important in a market environment that’s constantly shifting, both in terms of technology and consumer tastes. Against that background, stasis can be very damaging. Ambition and adaptability become vital. Take...
On April 16, Nasdaq 100 futures dropped over 2.30%, while European markets sank, with chipmakers ASML Holding NV falling more than 7% on weaker demand expectations. The market turbulence spilled over into cryptocurrencies, a sector that has shown a consistent correlation with US stocks since May...
Arbitrageurs as Market Makers When arbitrageurs buy and sell the same asset in different markets, they are in effect, acting as financial intermediaries, and therefore, providing liquidity to the markets.2 For instance, the options trader who writes calloptionswhen they feel that they are overpriced...
Note, in the majority of cases, the players most heavily involved in gamma scaling are market makers, members of the exchange, that provide liquidity to the markets, hence they are the most in need to compensate the theta risk in their open options. What this means is that gamma scalping...
Answer to: Explain why the market maker's bid-offer spread represents a real cost to options investors. By signing up, you'll get thousands of...
Furthermore, increasingly sophisticated pricing algorithms and tailoring of offerings to create markets of one could counter some of the improved market efficiency from online price transparency and comparison and review offerings. We did not find that rising concentration slowed productivity growth in our...
While steel and aluminum make up just a small part of China's exports to the US, Trump's move "is expected to invite the ire" of America's largest trading partner, Jingyi Pan, a market strategist with investment advisory firm IG, said in a note to clients. Shanghai's main stock in...