Euribor is one of the most interesting instruments of market spreads calendar. At present, as the spread is a little known market investors, but nevertheless it is very smooth.
It should be emphasized that the speech is not the only outrighT Euribor spread, and this is a big difference about what I write in previous posts. The main difference lies in the volatility calculated, liquidity and in the way of playing on outrighcie and spread.
Volatility and liquidity in the market are the factors that are changing every day and you can only statistically say - on the Euribor spreads volatility is relatively low and liquidity high. These are the qualities of an ideal instrument for spreads market. A huge plus is also that the market can "adopt" still a huge amount of investors. Liquidity, which appears daily on Euribor would allow for the separation of position for much larger number of orders. In other words, the market is waiting for new investors and whats more he wants them to "give away money". This statement may sound a bit agitate, but in fact is a lot of truth in this. The concept of why this is so lies in understanding the primary and main objective of the creation of this market. We can say that the opportunity to earn on it is kind of a side effect of the original purpose of its creation
Thus, I explain. Briefly and concisely. Euribor market was created in order to hedge against an increase mainly banks interest rates. This market serves them for hedging. Banks making positions in Euribor eliminate the risk of interest. Thus making positions in this market shift the risk, and patients taking these positions, take them. As the banks need to protect their capital market is needed which will be able to do it. To this end created Euribor market. The capital of banks to secure a dispute, because you need the order, which will take over the capital. The incentive to become market orders is of course the possibility of earnings. Euribor spreads market moves in range 2/3 levels / pips per day, the daily volume was an average of 100,000 contracts on major played spreadas. Huge volumen allows you to open positions and a small average daily range, says where a high probability of success could open positions.
The methods of entering into positions on Euribor can learn more HERE .
I should say from what they really depends on the liquidity of the instrumens, and when is the best time to invest in this market. Liquidity in Euribor largely depends on the level of interest rates set by the European Central Bank. The lower the interest rate, the lower the liquidity. With increasing interest rates banks in Europe must secure against the risk of interest rate changes. Thus on the Euribor there is a huge liquidity, banks want to protect - and then necassary a large amount of investors to "assume the risk". Institutions wishing to secure (place orders protecting them against changes in interest rates) must be available after the price at which they can sell or buy. Investors are there to put your workings at these prices and take the order opposite to those that make these institutions.
By market players, this market is most commonly used for day trading - the so-called scalping. Investors fight here one pip profit, but they do it very high flight. This market has a lot of features that differ it from all the other well-known markets:
This market can just learn. It can be (as for a normal unit) to write the specification :
- Very small daily range: 2/3 pips
- High liquidity
- Low transaction fees
- Building collapsed position of shortów and longów - building zbliansowanych position in one market
- Investing in the matrix
- Investing in the windows of orders (investment with virtually no charts )
- Lack of knowledge of technical analysis / fundamental is not an obstacle in making
Investing in any of the markets, the conditions necessary to make is :
- Knowledge of economics
- Knowledge of finance
- Knowledge of fundamental analysis
- Knowledge of technical analysis
- The ability to read a chart ( Japanese candles , bar graph , line graph )
- Knowledge of the indicators and their reading ability
- The ability to position management, risk, emotions
- Knowledge of techniques to stop putting loss, take profits.
Markets STIRS therefore require the efficient player some other skill. This can cause that in the future the market will become much more common. And it is because the people who want to make money in the stock market, but do not have immensity of knowledge in finance and economics can find here. Successfully engineers can handle myself here, people literate and literate count quickly make quick decisions under stress. Counts, therefore, perceptiveness and ability to react.
It may be noted that the requirements for successful investing in Euribor significantly different from those that are required when investments outrights. It is a large incentive for those who have the skills mentioned above and not finished studying economics and not read a stack of books on economics and investing.
Today, when the market is still little known, it can literally pull out a lot of money. This is done through a small queue (relatively few market participants), despite the high liquidity and very low volatility calculated.
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