Questions tagged [markets]

to be used for any question related to financial markets including share/securities markets, money markets, foreign exchange markets, commodities markets, bond markets, etc.

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What is the rate of return for the investor who purchased the bonds?

Company X issued 30 year bonds with 10% annual coupon rate at their par value of $1000 in 2010. The bond has a 7% call premium. Today Company X called the bonds. I am confused as to how to calculate ...
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Best way to determine price of an asset based on set of seller and buyer offers?

Lets say we have a fungible asset (stocks, gold, currency, crypto, etc.) that is freely traded on a market. The way this works is that people can submit buy and sell (bid and ask) offers. If a sell ...
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Calculate Average Price of Market Order in a thin order book:

Take the following UST/USDC order book: Suppose I were to place a market order to buy $10,000 USDC worth of UST. How would I calculate the average price the order would be filled at? Would this math ...
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Buffett believes Bitcoin has no value and no future. Isn't it the same with stocks? [duplicate]

Just listened to Warren Buffett's thoughts on Bitcoin and he claims that Bitcoin is a non-producing asset which has no value. Buffet also points out that it is just the hope that others will be ...
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1 vote
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What does it mean to say a market is governed by technicals

In an interview, Mohamed El-Erian had this to say about the current situation for global bond funds: I’m really glad I’m no longer managing fixed income bond funds because technicals rather than ...
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What is the equivalent concept to the Fair Market Value (FMV) system like the US has, but in other countries/places? [closed]

What is the equivalent concept of FMV (fair market value), which is written into the US Tax code, but not the Canadian tax code (although Canada uses it too it seems). But I haven't seen it mentioned ...
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8 votes
5 answers
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Can secret Bitcoin transfers cause the reported values to be completely off?

Is it possible to buy and sell bitcoin without any of the exchanges knowing about it? Since the price of bitcoin is determined by people buying and selling, could these secret exchanges cause the ...
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How does the Robinhood app or any website know the price of Bitcoin at any given time?

How do they know the actual price if it's always changing every second? Is there an algorithm they use to calculate it, or is there an authoritative source that they all go to that tells them what it ...
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3 answers
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My own currency: how much money per member?

I don't know for certain if this is the place to ask this question, but there I go. Let me know if I must delete this (or do it yourself if you can, no problem). My classmates and I are developing a ...
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2 answers
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Having a doubt in understand a particular topic from Financial Market [closed]

I am reading about money markets and there is the following section: "Money market is the short term financial market of an economy. In this market, money is traded between individuals or groups ...
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1 answer
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I want to know by an example how prices in stock market changes [closed]

Let us assume there is a listed company x. Currently it has 100 shares issued to trade in free float market. Current price of stock is let say 10. Now please let me know if I purchase one share of ...
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In what ways is the NFT marketplace different from the stock market?

Non-fungible tokens (NFTs) are all the rage. Creators can create works for digital art (and other types of digital assets) and sell them online. The sales occur on a cryptocurrency exchange like ...
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1 vote
6 answers
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Why should we expect the stock market to continue to generate returns long-term? [duplicate]

It is often said that the market is expected to go up in the long-term, even if it may be shaky in the short-term. The argument offered for this proposition is a simple visual picture of the S&...
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Why are there two different XIAOMI Stocks? [duplicate]

I'd like to buy Xiaomi Stocks. When I search in my Brokers List, i find two different Stocks: ISIN:US98421U1088 Symb: 3CPA & ISIN:KYG9830T1067 Symb: 3CP I figured that this is with quite a lot of ...
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Why a market crash? - The Confusing Behavioral Economics of the Market [closed]

Why does everyone panic sell (market crash) during bad, but temporary, conditions (as seen with COVID-19)? Why can't everyone agree that the companies most likely won't go bankrupt and will eventually ...
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2 votes
3 answers
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Size of market for physically delivered futures

I understand the difference between cash settled and physically setted futures contracts. I also know that most physically settled contracts end up not being exercised and are closed before expiration....
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1 answer
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Why does short ratio use "average daily trading volume"?

I understand what short interest is (% of shares borrowed but not covered yet). My understanding is that once a share is borrowed, it can't be borrowed again (legally, anyway). This would lead me to ...
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Evidence that silver is currently under-valued? [closed]

With the news about the short squeeze of silver currently under way, I have read articles/watched videos where people are talking about how precious metals, silver and gold specifically, are priced ...
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2 votes
1 answer
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Does "market manipulation" apply to Bitcoin and other cryptocurrencies?

Let's say I own a popular Twitter account with millions of followers. Would it be legal according to US law to engage in blatant market manipulation designed to trigger the price of Bitcoin to go up ...
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3 votes
3 answers
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Who are the market makers in options trading?

Can you give some examples? Are hedge funds also market makers?
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2 votes
3 answers
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Do futures markets have any predictive potential?

Comparing the WTI Crude Oil spot prices of the last five years with WTI Futures prices for Nov'2020 over time, it seems that they mostly follow the current price. This seems to enable one to lock in ...
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Reading material for an introduction to market infrastructure [closed]

I often read small one-liners here and there about circuit-breakers or IPO pipeline mechanics, but I have not found a comprehensive guide that unpacks all the moving parts of an exchange or its ...
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2 votes
1 answer
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Divestment: why do major asset managers plan it over years?

I've read several articles about asset managers/owners pledging to divest from fossil fuels. They seem to announce their intention and then proceed to divest over months or years. Why do they proceed ...
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5 votes
2 answers
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Why do spammers expect an increase in sales? [closed]

Spam is annoying. It's literally unsolicited, unrelated, random begging to buy a product or service. It's usually done by bots. What I don't understand is how could this actually increase profits? ...
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2 answers
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How do market makers pair up buyers and sellers?

Given this setup: Bob want to buy Share X of $100. Sue wants to sell that share for $120. Sarah wants to sell her share for $130. All of them use the same market maker (eg: some brokerage website). ...
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What is the exact difference between Recession , Depression and Financial Crisis [closed]

I want to know the exact difference between Recession, Depression and Financial Crisis.
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4 answers
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Why do people who sell something on a marketplace ever allow the price to go down?

This question really goes for any kind of "financial instrument" or whatever the generic term is, but I'm going to mention Bitcoin as an example. I fundamentally don't understand why, once ...
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11 votes
4 answers
5k views

Why do some investment firms publish their market predictions?

Investment firms often publish their market predictions. E.g. JPMorgan Sees S&P at 3,900 If Trump Wins Election (mirror 1, mirror 2) (no intent to comment on US politics, I'm not a US citizen ...
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24 votes
8 answers
7k views

How could an amateur investor make money off of a market crash?

Assume someone 'knows' that a market crash could occur within the next couple of months, and has no access to 'professional tools'. What methods could this person use to prepare for the crash in such ...
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Conditions affecting Markets [closed]

There are a large number of complex and often unknown reasons that markets move up, down or sideways, but if we were to prioritize some of them as the order of importance, would this list be accurate? ...
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2 votes
1 answer
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How are market rallies "fueled by sellers", and market sell-offs "fueled by buyers"?

I am looking at Trading the Measured Move by David Halsey. In chapter 5 Using Multiple Time Frames to Trade, section Trading the Trend, page 85: Why Do Markets Continue to Make New Highs? Markets ...
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11 votes
1 answer
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Why is the price of hydrogen (H2) in Germany fixed at 9.50 EUR per kg?

In Germany there are only a few H2 gas stations. Why do they all have the same price? Why is the free market disabled here? Which law is responsible and why was it created?
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1 vote
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What's the difference between a "market" and a "venue"?

I've seen the two terms used interchangeably. I've also seen ECNs referred to as "markets" but then seen ATSes referred to as "venues". I've seen "regulated markets" ...
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When sending orders to exchanges, is there any sort of personal identifier that is associated with the order?

If I place an order to buy or sell a stock or futures contract through a regular retail brokerage, is there any sort of personal identifier that goes to the exchange along with my order? I don't ...
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1 answer
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What is "market manipulation"?

What is market manipulation? When we can speak about market manipulation? Can "normal people" with a not so high budget manipulate the market?
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What's the story behind the Forex Broker

I would like to know when I open a position in market, what happened or what the broker does with my position really. Do I buy/sell anything in market or just we trade in market virtually and nothing ...
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1 vote
1 answer
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Trying to understand the behavior of the bond market during the COVID19 crisis [closed]

I'm aware of several corporate bond indices that are (slightly) going up despite of the COVID19 crisis. For instance, let's take this corporate bond index as an example. Choosing the 1Y chart one can ...
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4 votes
2 answers
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Price discovery and index funds bubble

I have read an article and watched a couple of videos about a possible index fund bubble. One of the arguments to justify this bubble is (if I have understood it correctly) that a very huge ...
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0 votes
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the impact of drop in oil prices financial markets performance and prospects? [closed]

Supporting that there is a correlation between oil prices and stock market. What could be the implications of low oil prices on the financial markets performance and prospects?
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-1 votes
1 answer
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the impact of drop in oil prices on oil producing companies? [closed]

Oil exporting countries will have a negative impact with the decrease in oil prices while oil importing countries will benefit from it. What about oil producing companies?
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-1 votes
1 answer
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Why does rollover helps to cut cost of current contract?

Offsetting involves closing a position. Rollover involves closing a position and opening a new one. Is offsetting a part of rollover? If not, what is the strategic difference between these two? ...
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1 vote
2 answers
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What happen to the Oil Contracts which are sold when there are only a few buyers?

If you don't want physical delivery, then you have to sell your futures contract before it expires. And what happened on April 20th is that oil prices went negative since there are lots of sellers and ...
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What is the loss difference between offseting and rollover the contracts?

If you are long a futures contract that comes near to expire, you have two options: Offset the position or rollover the contract You have to take delivery of the underlying commodity For example, ...
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0 votes
1 answer
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How come rollover the futures maintain the risk position?

I am still wondering about the risk difference between offsetting a position and rollover. As I know, both offsetting and rollover are involved in selling the initial futures contract ( which gives ...
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1 vote
2 answers
175 views

Why oil traders selling oil on the day before expire date but not the other days earlier than that?

As you know, the oil price was negative on April 20th 2020 due to the future contracts expiration date. I am wondering why traders had to wait until 1 day before expiration to close the position (sell ...
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105 votes
5 answers
13k views

What does it mean for the price of oil to be negative?

The New York Times website currently has this graph, showing that the price of "West Texas Intermediate, May contract" is $-13.10. Does it literally mean that someone's offering $13.10 to ...
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How market regulations in different countries affect to the investment risk [closed]

There are some countries that have less market freedom than others (see Index of economic freedom by countries. Let's take into account only developed countries (USA, EU, UK, Australia etc.). Do ...
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59 votes
13 answers
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Why isn't the market dropping like a stone with all the bad news?

So I am reading and listening to the news, watching the numbers re Covid-19, listening to and reading apocalyptic accounts of the coming recession, hearing of record breaking unemployment reports and ...
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1 vote
2 answers
438 views

UK First time buyer- offer accepted on house: Should I reduce offer due to coronavirus?

I live & work in the UK. A few weeks ago, I had a verbal offer accepted on a house (I am a first time buyer). I had initially offered a bit lower than the asking price, that offer was rejected, ...
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0 votes
3 answers
144 views

Can I make a profit on a put option when I'm out of the money?

Yesterday I bought LB put option with a 5 strike for .28 expires in 21 days. Whenever I bought the put, the premium(ask) went up to 4.90. I understand that you can make money selling the premiums only....
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