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60

If you do not understand the volatility of the fx market, you need to stop trading it, immediately. There are many reasons that fx is riskier than other types of investing, and you bear those risks whether you understand them or not. Below are a number of reasons why fx trading has high levels of risk: 1) FX trades on the relative exchange rate between ...


53

No, a jump in market capitalization does not equal the amount that has been invested. Market cap is simply the stock price times the total number of shares. This represents a theoretical value of the company. I say "theoretical" because the company might not be able to be sold for that at all. The quoted stock price is simply what the last buyer and ...


37

This is known as "Zone Pricing" or "Geographical Pricing". http://articles.latimes.com/2005/jun/19/business/fi-calprice19 Such price variations may seem odd, but they are not unique to Anaheim. On any given day, in any major U.S. city, a single brand of gasoline will sell for a wide range of prices even when the cost to make and deliver the fuel is the ...


37

Not sure why @Brick's answer was voted down; let me try to state it more precisely. maker Type 1 (seller): You tell the exchange that you want to sell at price P, but P is higher than the highest price at which any Type 2 maker is currently willing to buy. (You're demanding too much money in the eyes of everyone who's said they want to buy.) Type 2 (buyer)...


16

You seem to think that stock exchanges are much more than they actually are. But it's right there in the name: stock exchange. It's a place where people exchange (i.e. trade) stocks, no more and no less. All it does is enable the trading (and thereby price finding). Supposedly they went into mysterious bankruptcy then what will happen to the listed ...


15

Location, Location, Location. The closer to the highway, the more they can charge. People want to go less than a mile from the exit to get gas. Therefore they save time, but spend more money. That is understandable, so the gas station takes advantage of the situation.


14

Market-makers (which you term dealers) earn the bid-ask spread by buying and selling in as short a window as possible, hopefully before the prices have moved too much. It is not riskless. The spread is actually compensation for this risk. From The Race to Zero: The market-maker faces two types of problem. One is an inventory-management problem – how ...


14

As you are asking specifically for Kraken, here is what I found: What is ​Maker vs Taker? A trade gets the ​taker​ fee if the trade order is matched immediately against an order already on the order book, which is ​removing liquidity​. A trade gets the ​maker​ fee if the trade order is not matched immediately against an order already on the ...


13

In simple terms, the value of a stock represents the total value of: Adding up the assets (the things it owns) Subtracting the liabilities (the things it owes) Adding the present value of all the predicted future income streams. Present value means that you look at all the future years' predicted income, and discount it to make up for the fact that you have ...


12

The "price" is the price of the last transaction that actually took place. According to Motley Fool wiki: A stock price is determined by what was last paid for it. During market hours (usually weekdays from 9:30AM-4:00PM eastern), a heavily traded issue will see its price change several times per second. A stock's price is, for many purposes, considered ...


12

There are rules that prevent two of the reactive measures you suggest from occurring. First, on the date of and shortly following an IPO, there is no stock available to borrow for shorting. Second, there are no put options available for purchase. At least, none that are listed, of the sort you probably have in mind. In fact, within a day or two of the ...


12

Stock A last traded at $100. Stock A has 1 million shares outstanding. Stock A's market cap is $100 million. No seller is willing to sell Stock A for less than $110 a share. One buyer is willing to buy 1 share for $110. The order executes. The buyer pays the seller $110. Stock A's new price is $110. Stock A's market cap is now $110 million. An $110 ...


10

If you want to make money while European equities markets are crashing and the Euro itself is devaluing: Own US Treasury bonds. It is likely that during a Euro crash, capital will flee to "traditional safe havens" like US government debt. This will cause the price of these bonds to increase. To actually make money here, you'd need to be prepared to sell in ...


9

As you alluded to in your question, there is not one answer that will be true for all mutual funds. In fact, I would argue the question is not specific to mutual funds but can be applied to almost anyone who must make an investment decision: a mutual fund manager, hedge fund manager, or an individual investor. Even though money going into a company 401(k) ...


8

I only have anecdotal evidence here as members of my family used to own a grocery store / gas station, but they were often time charged much more to have the gasoline delivered to than many gas stations which were just a mile or two away (up to 15% more). Also depending upon the branding of the gas station, they are required to use certain distributors (i.e....


8

Every merchant makes money by buying wholesale, and selling retail. In the case of a market maker, the "bid" is the "wholesale" price, and the "ask" is the retail price. In "real life," the difference between wholesale and retail depends on how quickly something sells. High volume items like gasoline and milk have narrow spreads between wholesale and retail ...


8

I'd add, this is actually the way any stock opens every day, i.e. the closing price of the prior day is what it is, but the opening price will reflect whatever news there was prior to the day's open. If you watch the business news, you'll often see that some stock has an order imbalance and has not opened yet, at the normal time. So, as Geo stated, those who ...


7

When I ran a gas station, our price was largely set by our neighbors-- the other gas stations in the area. We couldn't go below the current cost of replacement gas, but other than that we wanted to be at .05 over the average. (We got away with charging more because we were the last station on a major road.) Everybody else did the same thing. Also, we only ...


7

GENIX was started by Joel Greenblatt back in 2013, so it is a real life test of the strategy. GENIX got off to a great start in 2013 and 2014 (probably because investors were pumping money into the fund) but had a terrible 2015, and lagging in 2016. Since inception it has under-performed an S&P 500 index fund by about 1.90% per year. The expense ratio ...


7

There is no unique identifier that exists to identify specific shares of a stock. Just like money in the bank, there is no real reason to identify which exact dollar bills belong to me or you, so long as there is a record that I own X bills and I can access them when I want. (Of course, unlike banks, there is still a 1:1 relationship between the amount I ...


7

Go to a large reference library and ask to see the Wall Street Journal for October 13 1992.


7

You need to hope that a fund exists targeting the particular market segment you are interested in. For example, searching for "cloud computing ETF" throws up one result. You'd then need to read all the details of how it invests to figure out if that really matches up with what you want - there'll always be various trade-offs the fund manager has to make. ...


7

No, you shouldn't wait for a crash. What if the crash doesn't come? What if the stocks you're interested in aren't specifically affected by a crash? What if what's considered a crash by others doesn't meet your criteria and you miss out? If it was that simple a concept, why doesn't everyone wait for a crash and then buy? How is your money being invested and ...


7

Most certainly there are such a thing as dual-listed or interlisted stocks. These are often exactly the same class of stock, but quoted on more than one exchange — and sometimes even in a different currency. Arbitrageurs can sometimes take advantage of differences in quotes and exchange rates. Here's list of Canadian Interlisted Companies including "...


6

It depends on both the level of the textbook and the markets it covers. If your book covers ordinary government and corporate bonds, I would suspect a book even 10 years old remains highly relevant. Likewise if the book focuses more on the math of fixed income than on the instruments themselves, as the math used today really hasn't changed much since the ...


6

Not a day goes by that someone isn't forecasting a collapse or meteoric rise. Have you read Ravi Batra's The Great Depression of 1990? The '90s went on to return an amazing 18.3%/yr compound growth rate for the decade. (The book sells for just over $3 with free Amazon shipping.) In 1987, Elaine Garzarelli predicted the crash. But went years after to produce ...


6

You can choose to place successively lower buy limit orders, but whether they get filled or not is not a given; it depends on whether sellers care to accept your bid. In your example of a 49.98 / 50.01 spread, if you place a buy with limit of 49.99, it won't get filled (if the order reaches the market while still at 49.98 / 50.01) immediately, but will be ...


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