Market Maker

There are different types of traders. Some trade stocks, some trade options, some trade futures. Some hold their assets for a long time (think months to years) and some hold their assets for a very short time (think seconds and minutes). There are many, many different types of traders, the…

Tick

Before we move on, we should talk about ticks. This word is probably one of most used in a trading environment. It can mean a lot of different things depending on what financial instrument (or product group) you are talking about. It can be used correctly or incorrectly. It can…

Liquidity

What is liquidity? In a broad sense, liquidity is the degree of ease to which an instrument, asset, or security can be bought or sold. If an asset is not liquid, we say it is illiquid. Let's take a look at an example. Let's compare two scenarios. Alex creates sculptures…

Price Ladders

Remember looking at this bid and offer? Here, there are 400 shares of AAPL bid on the price of 109.11. Likewise, there are 830 shares of AAPL stock offered at a price of 109.13. Now, in the above moment, what we are looking at is the best bid…

"2.5 Million DGU"

I recently heard the argument from the NRA that there are "2.5 million defensive gun uses (DGU) every year." They back up this number with a study done by Kleck and Gertz. The number seemed quite large (remember, we have a population of about 320 million in…

Bids and Offers Part 2

Last time we talked about bids and offers, we just mentioned how we would say our intent on buying or selling. A quick refresher: when you're bidding you say price on/for quantity (e.g. 5.25 for 100) and when you're offering you say quantity at price (e.g.…

Getting started with CryptoCurrency

With the recent craze of cryptocurrency, I wanted to make a simple guide on how to move your fiat money (USD) into cryptocurrency in a simple way. Coinbase In my quest to move my USD into different types of cryptocurrency, I looked around and found the easiest (and safest) way…