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.
189
questions
1
vote
1
answer
71
views
What exactly is wrong with treating two conceptually similar trading indicators as independent pieces of evidence?
Suppose you come across a financial trading system which starts by checking a security's 200-Period Moving Average, either by itself or in conjunction with the security's price data, perhaps signaling ...
- 111
0
votes
1
answer
71
views
What does it mean for an ETF to have outflow, doesn't every every sell have a corresponding buy?
I often read something along the lines that some ETF has big outflow. I never quite understand what this means since it's exchange traded: doesn't every sell have a corresponding buy?
- 135
0
votes
1
answer
55
views
Market Structure for Futures
I'm confused about how payment for futures contracts works if one sells before expiry. Consider the following scenario with a contract for delivery of good X:
A sells a futures contract to B for $50
...
0
votes
1
answer
77
views
Understanding a question asked about "consumption possibilities"
I am studying business finance for my MBA. I am a software engineer, and am finding some basic concepts really difficult. I believe I may be overthinking it. This is not for an assignment, it's a ...
- 167
2
votes
1
answer
93
views
How market orders are filled?
When we look at the stock price S of a stock, then if I am correct S is equal to the average between the highest bid and the lowest ask for this stock. Hence since the highest bid is lower than the ...
3
votes
2
answers
181
views
is future contract price fixed or not?
I thought that Future contract is an agreement to buy or sell an asset at a certain future time and a predetermined fixed price. So if, for example, I need to get 1000 GBP next June, but I am afraid ...
- 131
0
votes
1
answer
283
views
Position size calculator which includes fees in the risk
Problem:
I have a position calculator for scalping, but currently it does not include entry/exit fees in my risk calculation.
Since scalping, in most scenarios, requires leverage, those fees really ...
- 11
0
votes
1
answer
82
views
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 ...
- 1
2
votes
1
answer
62
views
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 ...
- 821
-1
votes
1
answer
217
views
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 ...
0
votes
1
answer
331
views
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 ...
1
vote
0
answers
70
views
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 ...
- 271
-1
votes
1
answer
58
views
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 ...
- 585
8
votes
5
answers
6k
views
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 ...
- 129
1
vote
2
answers
275
views
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 ...
- 129
-1
votes
3
answers
323
views
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 ...
- 21
0
votes
2
answers
103
views
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 ...
- 861
-2
votes
1
answer
121
views
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 ...
- 11
2
votes
4
answers
364
views
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 ...
- 327
2
votes
6
answers
737
views
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&...
- 101
0
votes
0
answers
41
views
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 ...
- 101
-1
votes
2
answers
164
views
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 ...
2
votes
3
answers
141
views
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....
- 157
0
votes
1
answer
130
views
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 ...
- 123
2
votes
2
answers
301
views
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 ...
- 515
2
votes
1
answer
189
views
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 ...
- 5,832
3
votes
3
answers
212
views
Who are the market makers in options trading?
Can you give some examples? Are hedge funds also market makers?
- 129
2
votes
3
answers
274
views
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 ...
- 137
1
vote
1
answer
70
views
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 ...
- 271
2
votes
1
answer
60
views
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 ...
- 155
5
votes
2
answers
1k
views
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? ...
- 169
0
votes
2
answers
233
views
How do market-makers pair up buyers and sellers?
Suppose that Bob wants to buy share X for $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 (e.g., some brokerage website). How ...
- 201
0
votes
2
answers
85
views
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.
- 113
0
votes
4
answers
2k
views
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 ...
- 25
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 ...
- 11.2k
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 ...
- 1,253
0
votes
1
answer
60
views
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?
...
- 167
2
votes
1
answer
115
views
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 ...
- 16.9k
12
votes
1
answer
3k
views
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?
- 247
1
vote
1
answer
1k
views
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" ...
- 568
0
votes
0
answers
69
views
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 ...
- 3,743
0
votes
1
answer
173
views
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?
- 109
0
votes
3
answers
113
views
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 ...
- 101
1
vote
1
answer
82
views
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 ...
- 1,241
4
votes
2
answers
353
views
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 ...
- 1,241
0
votes
2
answers
50
views
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?
- 3
-1
votes
1
answer
43
views
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?
- 3
-1
votes
1
answer
56
views
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?
...
1
vote
2
answers
118
views
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 ...
0
votes
1
answer
124
views
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, ...