Search results

This is very good advice.

bump

What is the consensus on this firm? Fees? Edge? What do they trade? How well capitalized is the firm? Are fees $3/1000? $4/1000? What are the managers like? Do they still take your entire trader bank if you leave? How big is the office? Payouts? Tech? Platform? How are they regarded? Commissions...

So, I've been wondering about this for a while, but how do market makers like Knight determine fair value in equities? How do they decide where to bid-ask and how wide the spread should be? How do market makers decide where a price is cheap? Obviously this is pretty valuable information for any...

P/E ratios are impacted by a company's choice of capital structure - companies which raise money via debt will have lower P/Es (and therefore look cheaper) than companies that raise an equivalent amount of money by issuing shares, even though the two companies might have equivalent enterprise...

I've been reading a bunch of research reports lately and I'm trying to better understand them.

Why does the discount rate here different from what I thought a discount rate is? Why does it take into account the weighted cost of capital? I realize this is a CAPM equation... but why does it intuitively make sense as a discount rate? Why isn't the discount rate just the risk-free interest...

I had a question about the multiple being capital structure neutral. EBITDA is capital structure neutral because EBITDA is going to be the same whether or not a company has lots of debt to pay off, or not. If a company is 100% financed by equity or 10% financed by equity, EBITDA is going to be...

Wiki quotes: "P/E ratios are highly dependent on capital structure. Leverage (i.e. debt taken on by the company) affects both earnings and share price in a variety of ways, including the leveraging of earnings growth rates, tax effects and impacts on the risk of bankruptcy, and can sometimes...

The reason why I'm confused is for regular equity options, say 1 ABC Jan 50 call @ 4, the multiplier is : "the number of shares of the underlying stock are included in the options contract. For most stock options this is 100 shares." So for equity options, the multiplier refers to the...

Sorry, I wasn't very clear. My question is that my study text says that options contracts are for 10,000 units of currency. What does that mean in the option series? Is 10000 the multiplier?

I think they have a contract size of 10000. Why is that relevant here?

Hey everyone, I had a question regarding foreign currency contracts. My book is a bit confusing regarding the structure of currency contracts so I thought I'd ask the community a simple question: So on the PHLX, the contract size is 10k units of currency except for japanese Yen which...

Assume a customer holds 1 ABC Oct 60 Put contract. The market price of ABC is currently $60. On an ex-date with a dividend of $4, the new market price is $56. The contract is still a ABC Oct 60 put correct? The strike and multiplier do not change? So what happens to the premium? Does it just...

What's the difference between these two instruments? What is going on right now? GAZ seems to be much higher % wise than UNG.

Here are my questions and the summary in bullet form: - So, the VXX blew up leading up to Friday's close before a volatility event (Greece possibility not passing austerity measures leading to a Greek default in March). SPY didn't move down at all. It seems like someone was just taking a...

bump

All right I'm going to have to figure out what this means and I'll get back to you.

I realize my question is asking for answers without providing much. The least I can do is explain a bit about why I'm asking. I'm currently a trader at a small prop firm who specializes in domestic equity. I do fairly well but I worry that my niche is small and becoming quickly saturated. I want...

I realize my question is asking for answers without providing much. The least I can do is explain a bit about why I'm asking. I'm currently a trader at a small prop firm who specializes in domestic equity. I do fairly well but I worry that my niche is small and becoming quickly saturated. I want...