Trading costs

• Feb 10, 2019
• finance

Trading and Exchanges Chapter 19: What Liquidity Really Means and Why It Matters

Everyone in finance talks about liquidity. Traders want it, exchanges advertise it, regulators worry when it disappears. Yet if you ask five people what liquidity actually means, you will get five different answers. Chapter 19 is where Harris finally pins it down. His definition is simple: liquidity is the ability to trade large size quickly, at low cost, when you want to trade. That is it. But the simplicity hides a lot of complexity.

• Jan 25, 2019
• personal-finance

Investing Psychology Chapter 5 Part 2: Corporate Bias, IPOs, and Hidden Trading Costs

We continue with the second half of Chapter 5 from Tim Richards’ “Investing Psychology.” If Part 1 was about how the professional investing industry takes your money, Part 2 is about how corporations and your own trading habits finish the job.

• Jan 23, 2019
• Finance

Liquidity: What It Is and Why Every Trader Should Care (Chapter 19)

Everyone talks about liquidity. Traders talk about it. Regulators talk about it. Financial journalists definitely talk about it. But Harris makes a sharp observation right at the start of Chapter 19: rarely does anyone define what they actually mean. People use the same word to describe different things, and then they wonder why they cannot agree on anything.

• Jan 17, 2019
• Finance

Bid/Ask Spreads: The Hidden Cost of Every Trade (Chapter 14)

Book: Trading and Exchanges: Market Microstructure for Practitioners Author: Larry Harris Publisher: Oxford University Press, 2003 ISBN: 0-19-514470-8

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