Ideosphere Forum

Re: if-discuss: too many Claims?

Author: Randy Hudson
Conversation: if-discuss: too many Claims? ( prev | next ) reply!
Topic: fx-discuss ( prev | next )
In-Reply-To: Dave Steele's post
Date: Mon Jul 22, 1996 10:31 am
Dave Steele
James JonesRandy Hudson
Dave Steele



Dave Steele wrote:

> If bid and ask prices are changing, and the spread is small (also a
> desirable trait), then trades will likely be occurring. If one of those two
> traits is missing, then assumptions about an efficient market may be
> suspect.

Every trade indicates a disagreement on price. If everybody agrees, no
trades will occur. Only when A thinks a contract is worth more than P,
and B thinks it worth less than P, does B sell it to A at price P.

--
Randy Hudson <ime@netcom.com>


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