Sentences with phrase «trading illiquid markets»

When trading illiquid markets, using automatic stops could be really frustrating if you don't set - up a rule (or those rules are not available) for the order to be triggered when the price remains outside the stop for a certain amount of time (and thus ignoring brief spikes).

Not exact matches

Privately issued securities are not traded on established markets and may be illiquid, difficult to value and subject to wide fluctuations in value.
Exchange - traded funds holding bonds offer cheap, efficient access to bond markets that, for individual investors, can be illiquid and expensive to trade.
While the bond market in general has become relatively illiquid, the corporate junk bond market is now largely trading in «step function» prices for anything larger than «one - sies and two - sies» ($ 1 to $ 2 million bond trades).
Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
After a predictably choppy and illiquid Fed - day on Wall Street, trading activity exploded as usual after the rate decision and the release of the monetary statement, with the first press conference of Jerome Powell also stirring up markets globally.
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.
Larger investors face more obstacles, as the Philippine market is rather illiquid and block trades can move underlying prices.
«An illiquid trading environment has exacerbated price declines that first began in June on profit taking and then continued through July as equity markets remained volatile on a host of concerns from geopolitics to earnings to the economy,» said investment strategist for LPL Financial, Anthony Valeri.
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
The Fund's units represent illiquid securities of an unlisted closed - end fund, are not listed on any securities exchange or traded in any other market, and are subject to substantial limitations on transferability.
Illiquid asset Immediate - or - cancel Income bond Income statement Indenture Index Indication of interest Individual Retirement Account (IRA) Industrial revenue bonds Inflation Inflation rate Initial public offering Inside market Insider Instinet Institutional investor Intangible drilling and development costs Integration Interbank market Interest Intermarket Trading System (ITS) Interpositioning In - the - money Intrastate offering Intrinsic value Introducing broker / dealers Inventory Inverted head and shoulders pattern Investment Investment adviser Investment Advisers Act of 1940 Investment banker Investment Company Investment Company Act of 1940 Investment contract Investment grade securities Investor brochure In - whole call IOC IPO Issue Issuer
As a result, those that make markets, or buy and sell stocks tend to be more cautious in setting prices to buy and sell illiquid securities because of the difficulty of trading, and the problem of moving the market away from you with a large order.
Furthermore, the trading costs in illiquid markets are higher.
Their bid ask spread reflects the overall trading volume in the ETF plus a risk premium that dealers require to make a market in a security that may have illiquid underlying assets.
* Finally, MediciNova is an extremely illiquid stock that most Avigen stockholders would find difficult to trade in the open market without significantly depressing the price, which warranted concessions.
On the other hand, illiquid markets, such as those for thinly traded fixed income securities and small cap stocks, can see bid - offers spreads of over 1 % of the asset's price.
On Grantham's comments: my comments Saturday night are pertinent here for two reasons — anyone selling illiquid CDO tranches, subordinated mortgage bonds, etc., immediately prior to the crisis would find two things: 1) the bids were non-existent or really poor, and 2) if the trade did take place, it would be at levels that reset the pricing grid for that area of the market a LOT lower, leaving the remaining securities looking worse, and a diminution of GAAP equity.
When markets are illiquid, they «trade by appointment.»
Illiquid markets have little trading activity and those trades that do occur may be done at large price increments.
The big advantage with MM is that they will provide a market even when the underlying is very illiquid and only might have a few trades each day.
If using a market order - yes you will buy or sell, but in an illiquid stock with a large spread you will get a very bad price for it, likely more than 10 % away from the last traded price.
When liquidity is scarce, prices tend to fall, though it is often masked by a lack of trading in an illiquid market.
Last week's sterling flash crash can be partly blamed on an illiquid time zone, but it's still a stark reminder how fragile markets are becoming, as banks (& in turn, hedge funds) have been forced to radically scale back their trading capacity & risk appetite.
-- Shares could be very illiquid, with far less information flow — you may see little trading, and brokers will have little incentive to support a market in shares.
That difference was most pronounced for funds that trade illiquid securities; it didn't show up in funds that primarily trade stocks or futures contracts, which have active markets and easily obtained prices.
Factors which may cause the adviser to make such a judgment include, but are not limited to, the following: only a bid price or an asked price is available; the spread between bid and asked prices is substantial; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a «significant event») since the closing prices were established on the principal exchange on which they are traded, but prior to the Fund's calculation of its net asset value.
Take into account market impact costs if you are trading in a particularly illiquid market.
That might work, but if the bonds are illiquid, often the derivatives are as well, or, the derivatives trade rich to where an identical bond would trade in the cash market.
Hedge funds, commodity pools and other alternative investments involve a high degree of risk and can be illiquid due to restrictions on transfer and lack of a secondary trading market.
Because new cryptocurrencies such as an ICO are often even more illiquid and thinly traded than say bitcoin (which itself is relatively illiquid), whales and insiders without vesting and lock - up periods can quickly move the market up and down due to the large amounts of coin holdings they have.
In illiquid markets and trading platforms with inflated volumes, it is relatively easy to manipulate the price of small cryptocurrencies.
Despite massive growth in crypto markets, exchanges remain illiquid, fragmented, costly to trade on, and open to theft by hacking.Consensys» latest Blockchain product Omega...
Due to the ability to invest in illiquid assets, many underlying fund assets are not traded on markets and therefore are not priced regularly.
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