Posts Tagged ‘economics’
A trader faces credit influencede by his estimates
Friday, April 16, 2010 20:38 Comments OffAs mentioned above, the choice each trader faces between market orders and limit orders is influenced by his estimate of the probability of execution, which depends both on the depth of the book at the time of the order submission and on the number of orders that may arrive over the remainder of the day. [...]
The role of changes in investors’ credit risk appetite
Thursday, October 22, 2009 12:45 Comments OffMarket participants often cite changes in investors’ risk appetite as a possible explanation for developments in global financial markets that cannot be explained by changes of market fundamentals. Indeed, financial crises often seem to coincide with abrupt shifts in market sentiment from risk tolerance to risk avoidance. While fundamentals undoubtedly remain of significant importance, these [...]