what is market inefficiency - page 2
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An efficient market is one where all the information is already factored into the price. An inefficient one is one where it is not accounted for.
I present a typical inefficiency:
Trading on the MICEX futures market starts at 10.00, with some contracts (BR,GOLD and other commodities) traded around the world around the clock.
By 10.00, the price of the BR-x.xx contract is clear and there are limit orders from the evening session at levels which often do not correspond to the current price at all.
All you need to do is to learn how to buy these Limit orders at the opening of the exchange, i.e. at 10:00:00.000.
Go for it!
.
An efficient market is one where all the information is already factored into the price. An inefficient one is one where it is not accounted for.
I present a typical inefficiency:
Trading on the MICEX futures market starts at 10.00, with some contracts (BR,GOLD and other commodities) traded around the world around the clock.
By 10.00, the price of the BR-x.xx contract is clear and there are limit orders from the evening session at levels which often do not correspond to the current price at all.
All you need to do is to learn how to buy these Limit orders at the opening of the exchange, i.e. at 10:00.000.
Go for it!
@Dmi3 thanks, now I know the name of what I did for a while on forts :)
So you're the one who knows how to redeem at the opening? Yeah, what freaks aren't there :)
Not waiting, I don't need it, keep it.
So what's the deal with Paretto and where's the link with efficient / inefficient?
You should at least read the wikipedia before talking nonsense.
An efficient market is one where all the information is already factored into the price. An inefficient one is one where it's not accounted for.
Yes.
In short:
1. An efficient market is a memoryless (Markovian) process. Sort of a Wiener process without demolition. On it, as the mathematicians say, it is impossible to make money.
2. An inefficient market - a process with memory (non-Markovian). Sort of a Wiener process with demolition. Well, like y=A*t+B, where B is integrated white noise, and A*t is drift (drift, trend).
Read wikipedia and find out for yourself who writes it.
I don't need it, I'm not looking for grails.
Yes.
In short:
1. an efficient market is a memoryless (Markovian) process. A kind of Wiener process without demolition. It is, as the mathematicians say, impossible to make money on.
2. An inefficient market - a process with memory (non-Markovian). Sort of a Wiener process with demolition. Well, like y=A*t+B, where B is integrated white noise, and A*t is drift (drift, trend).
Yes.
In short:
1. an efficient market is a memoryless (Markovian) process. A kind of Wiener process without demolition. It is, as the mathematicians say, impossible to make money on.
2. An inefficient market - a process with memory (non-Markovian). Like a Wiener process with demolition. Well, like y=A*t+B, where B is integrated white noise, and A*t is drift (drift, trend).
In this market it is like this
lot*dY*tv
and that's it