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andibello
Aug 19, 2015 at 06:24
ABOUT London Gold fixing.
andibello
Aug 19, 2015 at 06:23
There are no flags, and we're fixed :)
andibello
Aug 19, 2015 at 06:23
ABOUT London Fixing by Wiki
The five participating banks are market makers. They may have gold orders on their own behalf (proprietary trading), their clients' behalf (brokerage), or frequently some of each. Client orders will generally be limit orders. A buy limit order is executed unless the price is above a preset value. A sell limit order is executed unless the price is below a preset value.
The lead participant will begin the fixing process by proposing a price near the current gold spot price. The participants then simulate the result of trading at that price. The simulations do not merely factor physical gold, but include gold trading contracts ("Paper Gold") which are marginally backed and which therefore inflate market volumes and alter the supply/demand valuation formulas that would otherwise apply to the physical gold commodity.
First, each bank looks at its limit orders and determines how many are eligible to trade at that price. They can also consider how much gold their proprietary trading desk would trade at the same price. The bank then states a single value, the net amount (in ounces) of gold they wish to buy or sell. After each bank provides this value, they determine if the overall net amount is 0. If so, all transactions succeed and the fix is complete. The chair then states, "There are no flags, and we're fixed."
Otherwise, the chair must change the proposed price. If the amount of gold the banks proposed to buy is higher than the amount proposed for sale, he must raise the price. That will decrease the number of proposed purchases, both because more buy limit orders will fail and because of proprietary traders. At the same time, it increases the number of proposed sales, both because more sell limit orders succeed and because of proprietary trading.
Conversely, if the amount proposed for sale is higher, he must lower the price. This will have the exact opposite effects from above, increasing the number of proposed purchases and decreasing the number of proposed sales.
This process iterates until a fix is found. Buyers are charged 20 cents per troy ounce as a premium to fund the fix process; this results in an implicit bid-offer spread.
As with other forms of market making, participants attempt to predict the direction of the market and increase profits through timing.
Participants can pause proceedings at will. Originally, it was done by raising a small Union Flag on their desk. Under the telephone fixing system, participants can register a pause by saying the word "flag."
The five participating banks are market makers. They may have gold orders on their own behalf (proprietary trading), their clients' behalf (brokerage), or frequently some of each. Client orders will generally be limit orders. A buy limit order is executed unless the price is above a preset value. A sell limit order is executed unless the price is below a preset value.
The lead participant will begin the fixing process by proposing a price near the current gold spot price. The participants then simulate the result of trading at that price. The simulations do not merely factor physical gold, but include gold trading contracts ("Paper Gold") which are marginally backed and which therefore inflate market volumes and alter the supply/demand valuation formulas that would otherwise apply to the physical gold commodity.
First, each bank looks at its limit orders and determines how many are eligible to trade at that price. They can also consider how much gold their proprietary trading desk would trade at the same price. The bank then states a single value, the net amount (in ounces) of gold they wish to buy or sell. After each bank provides this value, they determine if the overall net amount is 0. If so, all transactions succeed and the fix is complete. The chair then states, "There are no flags, and we're fixed."
Otherwise, the chair must change the proposed price. If the amount of gold the banks proposed to buy is higher than the amount proposed for sale, he must raise the price. That will decrease the number of proposed purchases, both because more buy limit orders will fail and because of proprietary traders. At the same time, it increases the number of proposed sales, both because more sell limit orders succeed and because of proprietary trading.
Conversely, if the amount proposed for sale is higher, he must lower the price. This will have the exact opposite effects from above, increasing the number of proposed purchases and decreasing the number of proposed sales.
This process iterates until a fix is found. Buyers are charged 20 cents per troy ounce as a premium to fund the fix process; this results in an implicit bid-offer spread.
As with other forms of market making, participants attempt to predict the direction of the market and increase profits through timing.
Participants can pause proceedings at will. Originally, it was done by raising a small Union Flag on their desk. Under the telephone fixing system, participants can register a pause by saying the word "flag."
andibello
Aug 16, 2015 at 12:37
It is important to understand that the market-makers do not control the market. They are responding to market conditions and taking advantage of opportunities presented to them. Where there is a window of opportunity provided by market conditions – panic selling or thin trading – they may see the potential to increase profits through price manipulation, but they can only do so if the market allows them to. You must not therefore assume that market-makers control the markets. No individual trader or organisation can control any but the most thinly traded of markets for any substantial period of time. From 'A Special Word about Makert Makers' by Tom Williams.
andibello
Aug 16, 2015 at 12:33
The first secret to learn in trading successfully (as opposed to investing), is to forget about the intrinsic value of a stock, or any other instrument. What you need to be concerned with is its perceived value its value to professional traders, not the value it represents as an interest in a company. The intrinsic value is only a component of perceived value. From 'What is the Market' By Tom Williams.
andibello
Aug 16, 2015 at 12:33
The markets are certainly complex – so complex, in fact, that it has been seriously suggested that they move at random. Certainly, there is a suggestion of randomness in the appearance of the charts, irrespective of whether you are looking at stocks or commodities. I suspect however, that those who describe market activity as ‘random’ are simply using the term loosely, and what they really mean is that movements are chaotic. Chaos is not quite the same thing as randomness. In a chaotic system there may be hundreds, or even thousands of variables, each having a bearing on the other. Chaotic systems may appear unpredictable, but as computing technology advances, we will start to find order, where before we saw randomness. Without doubt, it is possible to predict the movements of the financial markets, and as technology advances, we will become better at it. There is an enormous gulf between unpredictability and randomness. From 'Random Walks and other Misconceptions' by Tom Williams.
andibello
Aug 09, 2015 at 06:40
it is not the destination, but the journey in life that is so rewarding. An old saying.
andibello
Jul 28, 2015 at 06:37
« Mi farà uccidere?
-No. Non adesso. Non Qui. Non io.
-E chi allora?
-La forza delle cose. »
(Dialogo tra Corrado Cattani ed Antonio Espinosa)
-No. Non adesso. Non Qui. Non io.
-E chi allora?
-La forza delle cose. »
(Dialogo tra Corrado Cattani ed Antonio Espinosa)
andibello
Jul 03, 2015 at 22:15
Dotato dalla natura di mezzi vocali d'eccezione, possedeva una voce scura e di rara potenza ma luminosa e facile anche nel registro superiore, potendo sfoggiare Si e Do di rara ricchezza e volume. By Wiki di Mario Del Monaco
andibello
Jun 22, 2015 at 06:12
The first reason people lose trading the markets is becaause they don'T have a plan of operation. They don'T have a system, an approach; they simply have a seat of the pants feeling for what they should do. That may work well when playing a poker or dealing with your loved ones, but it's not way you would go about flying an airplane and flying an airplane is a tame compared to trading commodities. By Larry Williams A Winn Futures Trading Strategy page 3
