Machine learning in trading: theory, models, practice and algo-trading - page 3599

[Deleted]  
Dmytryi Nazarchuk #:

Kitchen

Why the kitchen? It's leveraged money.
Kitchen is when you are supposedly trading with leverage, but in fact on a lottery.
 
Maxim Dmitrievsky #:
Why the kitchen? It's loan money.

Exactly. You have to pay for the loan. In a kitchen, the shoulder is just a drawing, but in a bank, it's a loan and you have to pay for it. You've got $5 million in your account, and they lend you half a billion - calculate the interest

[Deleted]  
Dmytryi Nazarchuk #:

Exactly. You have to pay for the loan. In the kitchen the shoulder is just a drawing, but in the bank it's a loan and you have to pay for it. You've got $5 million in your account and they lend you half a billion - calculate the interest

Please enter the fee and % for a short term loan
 
In my opinion, a kitchen is when a company takes risks on open positions on itself. And it does not matter whether it is a DC or a commercial bank.
It may be more profitable to kitchen one group of clients (e.g. small depots) and hedge the other group (the larger ones) out of harm's way.
[Deleted]  
Well, that's what I wrote that for. To Alexei's post about spreads. That kitchens form spreads randomly, so it is probably impossible to find a pattern in them.
 
JPMorgan rules the world
[Deleted]  
But the quote - it's about the same across the board and comes from interesting sources. Yeah, Morgan's name is probably in there, too :)
 
Maxim Dmitrievsky #:
But the quote - it's about the same across the board and comes from interesting sources. Yeah, Zp Morgan is probably in there too :)

He runs it and the others adjust.

 

has the MoD thread descended into a puppet ?

More or less the same prices on exchanges are maintained by arbitrage. Uzina spread by market makers.

leverage and credit, although close concepts and of the same origin, are radically different (in terms of application)

Currency trading through a bank is a medium and long-term investment.

[Deleted]  
If you have advertising slogans in your head, that is how forex works.
But no one knows how it really works, no matter who you ask.