hi there business folks

[chapter_2]

Re: hi there business folks

What is "transactional interest rate (TIR)? Why would there be selling and change in outlook if TIR is very short? Is it always the case that there needs to be extra speculation for shift in outlook to happen?

There is a premium attached to trading in the foreign markets. If transaction is short-term, the contract cost is high. this is tied to transactional interest rate and options trade as opposed to swaps.

[Southie]

Re: hi there business folks

There is a premium attached to trading in the foreign markets. If transaction is short-term, the contract cost is high. this is tied to transactional interest rate and options trade as opposed to swaps.

Thank you, chapter 2.

[Southie]

Re: hi there business folks

@chapter_2

If the trade volume is low the prices are low, and there is selling. when the volume is greater, the prices are high and there is more buying. the latter is a bull market. anyhow, in cases of arbirtrage, hedging is used and black-schoeles was invented to take care of risk! there is very little speculation in the market when there is a major trade-off risk in the stock exchange!

Can’t you have low trading volume at high price and vice versa?