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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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0answers
40 views

Do banks need a foreign branch to access a derivatives market (e.g.) London

I would be very interested to know whether banks (e.g. Santander, Deutsche Bank, etc.) need a foreign branch in a country (e.g. UK - London) to access the derivatives market in this country. Would ...
1
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1answer
115 views

Why market makers price themselves?

Why bother with army of quants and complicated pricing models and not just use market price to set your bid/ask and adjust the spread to something sensible and profitable? I understand if everyone ...
0
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1answer
50 views

NPV and efficient market hypothesis

If I have an opportunity of investment that costs I in year 0 and gives me CF_1 in year 1, I will accept it only if NPV>0 NPV = -I + (CF_1)/(1+k) Now in order to discount the cash flows I have to ...
3
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3answers
162 views

Interest rates and what does “discount” mean?

I was reading an article that says "Interest rates play an essential role in financial markets. Foremost, they represent the rate at which investors discount risk-free as well as risky future cash ...
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2answers
49 views

What is the difference between Overnight Repo Operations and Term Operations When talking About the Repurchase (Repo) Market?

According to the NY Fed website: In accordance with the most recent Federal Open Market Committee (FOMC) directive, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New ...
0
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2answers
127 views

CDOs before the 2007 crisis

I read somewhere that before the financial crisis of 2007 the financial instruments (CDOs) were so complex that the investors could not analyze them. Were they just complex or was there no public ...
1
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3answers
130 views

Bid and Ask in Stock Market

Further to the discussion on "Can someone explain a stock's "bid" vs. "ask" price relative to "current" price?"Chris W. Rea answered: In a stock market, the bid and ...
-9
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4answers
272 views

How much would a trading robot which doubles money in a period of time sell for? [closed]

How would factors of this calculation change for the rate of doubling, scalability (the maximum amount at which it begins to become less efficient), risk and other factors you might bring up a ...
3
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1answer
316 views

Why all assets seem highly priced?

Thinking about All Weather strategy, I looked at a number of financial asset indexes and their prices over the past year: US Stocks US Medium-term (7-10 year) Treasury Bonds US Long-term (20+ years) ...
0
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1answer
46 views

Bond prices - present value

I'm reading a text of Macroeconomics - Financial Markets as a chapter. It has a line which states: "Suppose you hold two-year bonds. Because the price of a two year bond is $P, every dollar you put ...
3
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2answers
447 views

What causes S&P 500 to grow faster than inflation? [closed]

Facts Average annual rate of USA's inflation is ~2% for the past couple of years Average annual return of S&P 500 is 10% Why? Many people suggest to move your money of your bank, which is maybe ...
-1
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1answer
134 views

Getting Started with Algorithm Trading [closed]

I was curious if it is feasible and worth my time/money to build a trading platform using external APIs and libraries or is it easier to use something like TD Ameritrade. In other words, are there any ...
3
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2answers
202 views

What do people mean when they say US 10 year Government Bond?

I am very new to investing and I am particularly interested in fixed income product. I am just wondering what do people mean when they say US 10 year Government Bond? This term confuses me as I can ...
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4answers
257 views

Efficient market hypothesis

According to the efficient market hypothesis, does the price of a stock take into account the company's growth prospects? It says that it is hard to find undervalued stocks but theoretically, is it ...
4
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5answers
766 views

Is it possible that any security listed in one country but trades in another country

For example a company which listed in Europe but trades in US market or vice versa. Could you please provide few examples of such securities. I found that depository receipts are foreign company's ...
6
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2answers
419 views

How does a company have a net loss in their income statement, but their stock market value still rises?

For example in the case of Tesla, they always have a net loss in their operating income, but still their market value keeps increasing. What do the shareholders get as dividend? Do shareholders get ...
0
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3answers
343 views

Is there benefit in waiting for a stock market to open?

I am planning to purchase shares of a particular company that produces electricity using renewable wind power. The share price after market closure yesterday was 13.60. The price has been remarkably ...
0
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2answers
313 views

Planing to invest into DAX/S&P500/NASDAQ100 soon. Should wait for market crash?

I hope this question isn't too opinion based, even if I'm afraid it might be. Looking at historical data, one could argue that a market Crash in 2018/2019 might probably happen. Obviously no one can ...
0
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1answer
137 views

Does divestment work?

Divesting from funds seems to be a vogue topic which I am hearing more about. The most prominent stories seem to be related to fossil fuel investments and national pension schemes. These institutions ...
5
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2answers
1k views

Are there multiple Bitcoin markets?

I have the (possibly wrong) suspect that Bitcoin questions are not received too well here, so I kindly ask you to go easy on me :-) According to this question we should categorize Bitcoin as a ...
1
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1answer
103 views

Margin accounts and futures delivery

I'm trying to understand the market mechanics of futures with delivery. For sake of example, assume 0 interest rates and no cost of carry, and that I bought a futures contract on Jan 1 with Feb 1 ...
0
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2answers
119 views

Is Buy X sell Y equivalent to sell (y-x)?

Suppose I have 2 trading strategies that independently comes to a conclusion, that in a market day, I am supposed to Buy X shares of Stock A and Sell Y Shares of the same stock A. Now, this need to be ...
1
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1answer
47 views

How to calculate John Templeton's market zones?

Does anyone know how John Templeton calculated his market zones, as seen on page 42 here: https://books.google.com/books?id=GBdGV9hxRPcC&pg=PA42&lpg=PA42&dq=john+templeton+stock+market+...
1
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2answers
94 views

Buying International Stock

I bought a Canadian stock on the US OTC market. What I'm trying to understand is does the stock get impacted by the US or Canadian market. For example, if the Dow, S&P 500, NASDAQ are all ...
22
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4answers
7k views

Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017?

The share price went up about 6.9%, and the market cap is $466 billion. Does that mean that that much new money had to have been invested after hours? Would it otherwise be possible for the stock ...
2
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1answer
985 views

Market price calculation algorithm?

So I am doing digital assets trading. Which is very interesting way to make some money (and at the very least cover the inflation rate). The trading itself with all different options is quite clear. ...
0
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1answer
351 views

Limit and Stop Market Buy Order , which will get activated first?

If we have a One cancels Other (OCO) order strategy , this is a strategy placing order, where you can place 2 orders, and when one of them gets filled, then the other will get canceled, and vice ...
2
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2answers
184 views

How do exchanges handle overflowing market orders

Say that I observe the following market (a simplified limit order book with only limit and market orders): Bid | Price | Ask | 100.75 | 10 | 100.50 | 40 20 | 99.40 | ...
1
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0answers
59 views

Time frames for NYSE response?

I have noticed that when NYSE gives a notice of non-compliance, they usually give about 30 days to the company to submit a response, plan, request extension etc. However, is there a time-frame for ...
0
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1answer
93 views

What is the rate of return for a security when there is no risk-free rate (CAPM)?

Let say I want to invest 1000€ in cryptocurrencies in order to get 2000€ In the famous CAPM, the relationship between risk and rates of returns in a security is described as follows: For a security ...
1
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1answer
51 views

How does the listed equity options market influence other financial markets?

I'm reading Options Markets by Cox and Rubinstein, and there's a section entitled Effects on Other Financial Markets. The section is less than a page long, and while it presents some findings of ...
2
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2answers
185 views

Is the forex market large enough for copytrading?

Let's say I have a strategy where I take 2 trades at the same time every day. With 1:1 risk to reward ratio, and the strategy works 60% of the time. Let's say I share my picks every day with 10, 20, ...
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2answers
65 views

Market Hours and Valuations

As most stock exchanges operate a limited number of working hours, generally Monday to Friday during traditional office hours, but many businesses now operate 7 days a week, often 24/7, to what extent ...
-1
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2answers
102 views

Is there any other reasons beside market manipulation for a penny stock declined 20% within 5 minutes to closing despites nonnegative news? [closed]

Is there any other reasons beside market manipulation for a penny stock declined 20% within 5 minutes to closing despites nonnegative news? It declined so rapidly that I placed market order to sell ...
-1
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1answer
68 views

When a Company was expected and then made a profit of X $ then that X$ increased it's share price. or those the Sellers and Buyers [duplicate]

When a Company was expected and then made a profit of X $ then That X$ increased it's share price. or those the Sellers and Buyers? Is it because Company A did a profit of X amount, so X is now ...
0
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3answers
157 views

Does the profit of a company directly affect its stock or indirectly by causing people to buy or sell?

From what I've read stocks basically only depend on what the market believes is the value of it. So if everyone decided to not sell a stock no matter what, does the profit of the company matter at ...
23
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3answers
10k views

What is the cause of sudden price spikes in the FOREX market?

I just started trading currencies on the FOREX market and notice that, sometimes out of the blue, there is a spike of massive PIPS in an instant. Who has the power to do that and why would anyone buy ...
3
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1answer
3k views

How do brokerage firms make money?

I know that this question has been hinted at on other open question sites like Quora but I have yet to find anyone who lists all of the points in one place. I understand that firms make money by: ...
3
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1answer
159 views

How to invest in a specific market without investing in a specific company?

Let's say I am bullish on "Cloud Computing" and I want to make one investment, but do not want to invest in any specific company (e.g. Amazon). How could I invest soundly in the "Cloud Computing" ...
2
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1answer
155 views

What are frontier markets? Is investing in them a good idea?

Recently I had a look through a number of funds that offered investment options to various geographic areas of the world. One such sector I had never heard of before: frontier markets. I know many ...
-4
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1answer
128 views

Market Relativity Theory?

Would it be fair to assume this: High market-cap securities will usually perform influenced to some extent by the market/Index fund they are currently traded on. For example; the Turkish Borsa ...
2
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1answer
122 views

Why do stock or commodity prices sometimes rise suddenly just before market close?

I often (not always but often) see that stock/commodity price rise sharply when market is approaching close. Shouldn't this be opposite (taking intraday profit)? What is the purpose of this strategy?
41
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6answers
56k views

Maker taker fees - can somebody explain in plain english?

I'm interested in learning about how trading works, but this is all very new to me so bear with me. (I'm just poking around at this point, obviously nowhere near ready to actually be trading) Some ...
3
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3answers
663 views

How can I find the historical stock price for a specific stock on a specific date?

I am looking for an old stock price of a company that subsequenty has merged with another company. I am looking for the stock price of Union Electric (UEP) on Oct. 12, 1992.
5
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3answers
1k views

Does an individual share of a stock have some kind of unique identifier?

A security has an ID like a CUSIP or an ISIN. Does an individual share of a stock have some kind of unique identifier? The sort of thing that once would've been printed on a stock certificate, back ...
7
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1answer
697 views

How are unmarketable market orders (other side of the order book is empty) matched with incoming orders? [duplicate]

Note: This question is erroneously marked as a duplicate. It concerns a very specific situation with unfulfillable market orders in very illiquid markets, one that no other discussion here has covered....
5
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4answers
298 views

Does bull/bear market actually make a difference?

This may be an extremely naive question, but it is often discussed on the news, here and in person (at least in financial circles) that it is easy to make money in a bull market, and harder to make ...
2
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3answers
316 views

How profitable is selling your customer base? [closed]

I'm currently in the process (early process) of trying to get a product into the market. I am a college student with a heavy, background in computer hardware and software. As I began my research, I ...
1
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1answer
129 views

What is network marketing? [closed]

Recently, I have been studying Robert Kiyosaki. He states that one of the best methods to prepare yourself in business is Network Marketing. What is this, and how can I learn it?
12
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2answers
2k views

What does it mean to invest in potatoes?

There is an amusing thread on Reddit where people discuss what they would do with an unlimited supply of potatoes: http://www.reddit.com/r/AskReddit/comments/37yawp/...