Recent content by brut

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    can someone explain flash trading

    So as I understand it: flash trading is when an exchange flashes orders to their own members before feeding them in to the market. So the order can get filled by a member of the exchange, who can then trade out a a better price in the nationwide market. So here's what I dont understand: why...
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    Order "aware minimum margin"

    maintenance margin isn't order aware margin though, as seems to referred to in post above ?
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    Order "aware minimum margin"

    if you have a stop order on an open position, then your margin is reduced by 50%, as it is "aware" of the fact you have a stop in there. if the total loss in the case of the stop being hit is greater than 50% of your initial margin, then this value will be your total margin
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    can someone explain current account & trade deficits

    i see, understood, thanks
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    can someone explain current account & trade deficits

    im confused. The US (say) imports $1m worth of goods from china, and exports nothing. so it has a trade deficit. this $1m cash is then reinvested by china into the US to buy government bonds. so there is a zero net flow of cash out of the united states. they started with $1m and ended with...
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    rights issue question?

    sorry, so my overall question is why does a share price rally if there is a large take up of the rights issue? is it not largely irrelevant ?
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    rights issue question?

    under what circumstances does a company end up with "rump" stock, that is not taken up in a rights issue? If Im a shareholder and I sell the nill paid rights instead of taking up the rights, doesn;t somoen else buy the new stock armed with the rights ? is unbought new stock as a result of...
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    how does buying treasuries help credit?

    thanks gents. could you recommend a decent book on basics of financial economics? I don;t want to do an MBA or anything, my studying days are over, but would like a good general overview ?
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    how does buying treasuries help credit?

    i see. simple as that, thanks
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    how does buying treasuries help credit?

    how dies the fed buying up treasuries ease conditions in the credit markets? is it simply a way of prining money and effectively lowering inrterest rates ?
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    Nice " Surprise " from World Spreads

    in fairness you're stop can work both ways in this instance, ie if your stop is hit but the market rallies back in your direction then your closed out at the better price. so there's no p&l difference in it for them, they just trade during advertised hours. i wonder if they get complaints when...
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    bond issuance results v bond futures prices?

    thanks for your reply. i'm still confised though: i understand the bonds being issued are not neccesarily CTD for the future, so there will not be a demand from futures market deliverers per se. but why would there be a high demand for the buy side of futures contracts, yet no demand for the...
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    whst to study???????/

    just do engineering. you can't teach engineering to financiers, but you can teach finance to engineers.
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    bond issuance results v bond futures prices?

    if the germans can;t sell their bunds at auction, why is the euro bund up? does a lack of demand at auction not represent a loack of demand for the security full stop? or am i missing something obvious >?
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    quantitative easing question?

    Am I right in thinking theat the mechanism works thus: by buying trasuries, the fed injects funds to the treasury, which controls the flow of money in the money markets. when the t4easury has more money, it has more to inject to the money markets, bringing down effective rates. However, is the...
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