- published: 02 Dec 2013
- views: 774
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Price Discovery” In its simplest form, the constant interaction of buyers and sellers enables a price to emerge over time. It is often difficult to appreciate this process because the retail prices of most manufactured goods are set by the seller. The buyer either accepts the price. or does not make the purchase. While an individual consumer in a shopping mall might haggle over the price, this is unlikely to work, and they will believe they have no influence over price. However, if all potential buyers haggled, and none accepted the set price, then the seller would be quick to reduce price. In this way, collectively, buyers have influence over market price. Eventually a price ...
How are the prices of stocks determined? Bubba explains the concept of price of discovery.
Learn more about the price discovery process on the London Metal Exchange.
This video introduces the Price Discovery trading simulation we run at the Wasserman Trading Floor at Baruch College. Topics covered in this introduction include the role of information in markets, basic "long" and "short" trading strategies and the trading mechanics for taking long and short positions. You may wish to review my videos on Limit Order Books: http://youtu.be/Iaiw5iGjXbw and Limit and Market Orders: http://youtu.be/Q20LikeHAYk
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The mechanics of price discovery
Price discovery and information
A discussion of the importance of liquidity and market price discovery. The pitfalls of not having information (or choices) when the unexpected happens.
Full Description and Comments at: http://www.peakprosperity.com/podcast/92011/commissioner-bart-chilton-price-discovery-commodities-markets "The commodity markets impact almost everybody on the planet, every single day, because some derivative or variant of about everything that they consume is impacted by those prices. Whether or not it’s a home loan, or a piece of jewelry, or a fill up at the gas station, or a gallon of milk, or a loaf of bread -- commodity pricing is vastly more important than most people actually realize." ~ Former CFTC Commissioner Bart Chilton In theory, regulation is supposed to set and enforce the rules of the game that market participants play by, in order to ensure that price discovery remains efficient, effective -- and most important -- fair. In practice,...
What the price discovery of gold and silver means? My long term conclusion of the metals market observations.
Learning how to play price against itself in trading, backwardation and contango