Ideosphere Forum

Re: if-discuss: too many Claims?

Author: James Jones
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 07:12 am
Dave Steele
James Jones
Dave Steele

On Sat, 20 Jul 1996, Dave Steele wrote:

> I'm not too interested in that measure. If the issue is binary, the holders
> are liable to be insensitive to price fluctuations (i.e. they would have
> bought at a wide range of prices). I don't believe that there is an
> accurate market unless trades are occurring.

Not necessarily. No trades could simply mean that the price has been
pegged successfully, as closely as possible to the "right" price. As long
as no new information enters the market, it has no reason to fluctuate and
be traded. In fact, no trades actually have to occur for the price to
change. It's sufficient for the bid and ask to change.

James Jones
"Oh, well, what the hell." - Yossarian


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