DislikedFrom Marex, vwap ladder view.
That are ESP prices and for the most time executable.
Latency and how fast banks analyze order flow is an important factor -
especially during volatile times.Ignored
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DislikedFrom Marex, vwap ladder view.
That are ESP prices and for the most time executable.
Latency and how fast banks analyze order flow is an important factor -
especially during volatile times.Ignored
DislikedIn other words the quotes shown above are not executable. But there are venues which provide executable streaming prices - Hotspot, Lava, Integral, FXAll. They offer true liquidity instead of indicative liquidity like in the screenshot above.Ignored
DislikedJust wanted to mention that when you hear traders talk about 'mis-pricing,' they are talking about when a dealer or dealers adjust their prices by mistake when they believe adverse selection risk is immanent while it's really not.
For instance if a dealer trades with someone who he believes is informed, or if he believes informed traders are present he will adjust his quotes up or down depending on the side the informed trader is trading. Say for example his bid is taken out in one fowl swoop, while the market has been dropping. The trader who...Ignored
DislikedHi Cindy,
What you said about value is pretty much what I thought - or used to think. Now I'm not sure. However if value is what price is, how can the market ever be mispriced? I mean sure ok a dealer thinks an uninformed trader is informed, and adjusts his prices. In Scotty's example everyone adjusts their prices. That means the new price is the new value, even if it was arrived at for the wrong reasons. So how could you or anyone else know it was mispriced unless there was such a thing as a "correct" price - which I'm calling its "true value"?...Ignored
DislikedCheck out Oslers paper "Price Discovery in Currency Markets"
http://people.brandeis.edu/~cosler/pdf/Price%20Discovery_11-07.pdfIgnored
DislikedSure everyone has their own perceived value and it's pretty much priced into the market, but in order for you to know the market is mispriced, you either have to have your own perception of what the value should be, and if the price isn't there then you can say it's "mispriced" (but how could you have come to the conclusion of what its value should be without some major fundamental analysis... and even that will only get you at most a general value area I think), or else you know it's mispriced because you know the reason why price just moved,...Ignored
DislikedSpeaking plainly I think this whole orderflow thing is just taking advatage of the system thats in place and "mispricing" is in basic terms just that! An error by the people that set the price. (genius I know lol) but what i mean is does there really have to be an ACTUAL REAL PRICE VALUE for an instrument to be mispriced? Think about itIgnored
DislikedHi Cindy,
What you said about value is pretty much what I thought - or used to think. Now I'm not sure. However if value is what price is, how can the market ever be mispriced? I mean sure ok a dealer thinks an uninformed trader is informed, and adjusts his prices. In Scotty's example everyone adjusts their prices. That means the new price is the new value, even if it was arrived at for the wrong reasons. So how could you or anyone else know it was mispriced unless there was such a thing as a "correct" price - which I'm calling its "true value"?...Ignored