Sentences with phrase «in illiquid markets»

When liquidity is scarce, prices tend to fall, though it is often masked by a lack of trading in an illiquid market.

«We watch what the large Chinese brokers are doing everyday and follow them blindly as that can be quite profitable in these illiquid markets,» said the head of an equity derivative trading desk at a European bank in Hong Kong.

We stepped up in an illiquid market in order to facilitate the orderly unwind of risk and when necessary, committed our own capital to help serve the needs of our customers,» says Christian Salomone, head of North American foreign exchange options trading at Goldman Sachs.

The inability to effectively transact in an illiquid market hastened the 2008 crisis.

Trying to apply price action techniques in illiquid markets is not a sound approach.

Furthermore, the trading costs in illiquid markets are higher.

This is normal, because in illiquid markets where there is a lot of credit risks, there are few trades, and when things go bad, prices shift dramatically lower.

This type of selling in an illiquid market drives bond prices down further, and thus pushes yields up to where the affected countries have trouble selling new foreign - currency bonds to service the existing foreign - currency bonds.

In illiquid markets the difference between buyers» and sellers» opinions of value grows — something called the «bid - ask spread.»

In an illiquid market, however, the quantity of something that people would be willing to buy near market price could be surprisingly low.

In illiquid markets and trading platforms with inflated volumes, it is relatively easy to manipulate the price of small cryptocurrencies.