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16
votes
4answers
3k views

Are precious metals/collectibles a viable emergency fund?

My significant other received a gift from a family member in the form of silverware. The exact value is not known but it is likely enough to cover 6+ months worth of expenses if it were sold. It is ...
1
vote
1answer
61 views

How important is volume when choosing an exchange?

I'm investing some money in ETFs; buy and hold. My local currency is CHF. I have an account in Interactive Brokers. So far I've operated on the London Stock Exchange, which means I have to do a forex ...
-1
votes
1answer
69 views

Relationship between liquidity and an efficient market

If I have two securities A and B(they can be any combo of stock, etf, index, option ), then is it oversimplification to assume that if A has a more liquid market than B, then A is more efficiently ...
0
votes
2answers
112 views

Considerations for holding short-term reserves?

About 20% of my income comes in at the beginning of each year from being a business owner. For the past few years, I've been keeping reserves needed to hold me over to the next year in a money market ...
1
vote
1answer
452 views

How to understand adding or removing “liquidity” in stock markets with market/non-market orders?

Most explanations on this topic about adding and removing liquidity simply state that market orders remove liquidity and limit orders add liquidity. Is it possible to have a bit more elaborate ...
5
votes
3answers
209 views

Should I prioritize paying down my higher interest debt over building an emergency fund, or vice-versa?

I have a debt of $15,000 at a yearly interest rate of 9%, which can be paid within 5 years. Would it be better for me to: Build first the emergency fund (e.g. liquidity for 6 months' expenses ...
3
votes
2answers
293 views

How to sell option with no volume

If there is no volume on options you want to buy/sell, should you do any transactions with those options? Here is my scenario: I recently bought two puts of an industry ETF. A few days later it ...
3
votes
2answers
126 views

Looking at Options Liquidity: what makes some stocks so attractive for options traders?

I've noticed that options volumes can vary dramatically between underlying securities. What makes some stocks (e.g. AAPL, BAC) so attractive for options traders?
3
votes
3answers
196 views

Does a stock's price represent current liquidation of all shares?

For instance, if a stock is trading at 40 dollars per share, and there are one billion shares being traded, there will be a market capitalization of 40 billion dollars. Let's say the markets are ...
2
votes
2answers
584 views

Which is the most liquid market for trading?

I've traded spot forex and I found it really liquid (trades can be executed within a few seconds). However, in NSE (India) share market, it takes between minutes to days to sell the shares I've ...
4
votes
1answer
116 views

Models for evaluation of real estate as an investment?

Considered as an investment, real estate differs largely from other investments like equity. E.g. The difficulty in selling (Potential long time span in waiting/hunting for buyer), the much higher ...
4
votes
1answer
75 views

How do I research, analyze, and choose the right mutual fund for a roth ira?

I recently opened a Roth IRA in the USA and I'm new to investing. How do I research a mutual fund and what aspects should I analyze to figure out if it fits my investment strategy (I might not even ...
18
votes
7answers
704 views

Importance of liquidity in emergency fund?

I know standard rules of thumb are that it is a good idea to have a liquid emergency fund of between of anywhere from 3-8 months of expenses (depending upon the source). How important is liquidity ...
4
votes
4answers
2k views

What is high trading volume in a stock indicative of? Is high liquidity a good thing or a bad thing?

At Investopedia - Average Daily Trading Volume - ADTV it says: If trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it. ...
6
votes
5answers
365 views

Is there a Way to Bet on the Trade Volume of a Stock?

Say stock ABC trades 100,000 shares per day. I feel strongly that in the near future it will trade 200,000 shares per day. Is there an instrument I can buy to profit on this? To be clear, I don't ...
5
votes
4answers
1k views

Should I wait to save up 20% downpayment on a 500k condo?

Proper 2BRs start at $500k in our neighborhood. We're looking at buying, but I'm leery of the $100k downpayment. It would reduce our savings to 50k liquid and 75k in retirement. I can easily ...
11
votes
8answers
604 views

Put idle savings to use while keeping them liquid

Since I graduated from college, I've collected ~$15K USD of savings. Currently this is sitting idle in a low interest checking account. I'd like to put it to better use, but I also need to make sure ...
20
votes
13answers
15k views

As a general rule, how much in “liquid” emergency savings should I have?

I'm buying my very first home next week, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a ...