Derivatives and Volatility on Indian Stock Markets
... important instruments of price discovery, portfolio diversification and risk hedging in stock markets all over the world in recent times. With the introduction of all the above-mentioned derivative products in the Indian markets a wider range of instruments are now available to investors. Introducti ...
... important instruments of price discovery, portfolio diversification and risk hedging in stock markets all over the world in recent times. With the introduction of all the above-mentioned derivative products in the Indian markets a wider range of instruments are now available to investors. Introducti ...
The information content of an open limit-order book
... informed traders use limit orders as part of their trading strategies. On the contrary, if informed traders prefer to use market orders over limit orders, it will be expected that their market orders may pick off any mis-priced limit orders until the book reflects all available information. The auth ...
... informed traders use limit orders as part of their trading strategies. On the contrary, if informed traders prefer to use market orders over limit orders, it will be expected that their market orders may pick off any mis-priced limit orders until the book reflects all available information. The auth ...
SLBE 5% Price Pref Explanation
... for application of the 5% price preference (or any other API under this SBLE Program), the certified Small Local Business Enterprise Joint Venture must perform at least 51% of the total contract cost, with its own forces, and the SLBE Joint Venture partner must own and manage at least 51% of the Joi ...
... for application of the 5% price preference (or any other API under this SBLE Program), the certified Small Local Business Enterprise Joint Venture must perform at least 51% of the total contract cost, with its own forces, and the SLBE Joint Venture partner must own and manage at least 51% of the Joi ...
EN_Interview_traders
... Has the number of customers asking for credit changed? Has the amount of credit that customers demand changed? F. Price changes Q26: How have the prices you pay to purchase the key commodities from your suppliers changed since the shock? (For each commodity note the current buying price, the price b ...
... Has the number of customers asking for credit changed? Has the amount of credit that customers demand changed? F. Price changes Q26: How have the prices you pay to purchase the key commodities from your suppliers changed since the shock? (For each commodity note the current buying price, the price b ...
Before The - Maryland Public Service Commission
... Yes. In connection with my review I have read the following sections of its Natural Gas Risk Management Policy as contained in the draft dated January 26, 1996: ...
... Yes. In connection with my review I have read the following sections of its Natural Gas Risk Management Policy as contained in the draft dated January 26, 1996: ...
contracts 9,899,780,283 traded
... firmly to that spot for the last three years. Predecessors of today’s Euronext group participated in the top five list all six years. Monep, which became part of Paris Bourse, was in fifth place in 1999; Paris Bourse was in third and fourth place in 2000 and 2001 respectively. Euronext appeared firs ...
... firmly to that spot for the last three years. Predecessors of today’s Euronext group participated in the top five list all six years. Monep, which became part of Paris Bourse, was in fifth place in 1999; Paris Bourse was in third and fourth place in 2000 and 2001 respectively. Euronext appeared firs ...
Contango
Contango is a situation where the futures price (or forward price) of a commodity is higher than the expected spot price. In a contango situation, hedgers (commodity producers and commodity users) or arbitrageurs/speculators (non-commercial investors), are ""willing to pay more [now] for a commodity at some point in the future than the actual expected price of the commodity [at that future point]. This may be due to people's desire to pay a premium to have the commodity in the future rather than paying the costs of storage and carry costs of buying the commodity today.""The opposite market condition to contango is known as normal backwardation. ""A market is 'in backwardation' when the futures price is below the expected future spot price for a particular commodity. This is favorable for investors who have long positions since they want the futures price to rise.""The Commission of the European Communities (CEC & 2008 6) described backwardation and contango in relation to futures prices: ""The futures price may be either higher or lower than the spot price. When the spot price is higher than the futures price, the market is said to be in backwardation. It is often called 'normal backwardation' as the futures buyer is rewarded for risk he takes off the producer. If the spot price is lower than the futures price, the market is in contango.""The futures or forward curve would typically be upward sloping (i.e. ""normal""), since contracts for further dates would typically trade at even higher prices. (The curves in question plot market prices for various contracts at different maturities—cf. term structure of interest rates) ""In broad terms, backwardation reflects the majority market view that spot prices will move down, and contango that they will move up. Both situations allow speculators (non-commercial traders) to earn a profit.""A contango is normal for a non-perishable commodity that has a cost of carry. Such costs include warehousing fees and interest forgone on money tied up (or the time-value-of money, etc.), less income from leasing out the commodity if possible (e.g. gold). For perishable commodities, price differences between near and far delivery are not a contango. Different delivery dates are in effect entirely different commodities in this case, since fresh eggs today will not still be fresh in 6 months' time, 90-day treasury bills will have matured, etc.