Secrets of Finances and Payday Loans

In the rest of this blog three models will be outlined in which the choice between limit and market orders is the key element of traders’ optimization strategies. The model by Parlour (1998) concentrates on the time priority rule, which governs limit order books, and shows how the choice between market and limit orders depends [...]

Changes in risk appetite seem to depend on the level of risk appetite in the preceding month. Up- and downswings of risk appetite are driven by investors’ perceptions. If risky assets have outperformed for some time, investors tend to expect a continuation of this outperformance. Conversely, during times of underperformance of risky assets, investors apparently [...]

Geopolitical risks like war and terror can create stress scenarios for all risky asset classes. The geopolitical situation has a strong impact on the risk aversion of investors. The events of September 11, 2001, provide a tragic example after which investors bought safe haven assets such as government bonds and gold at the cost of [...]