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Trading Perspectives Liquidity and Markets

Elio E

$50.95   $43

Paperback

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English
Elio Endless Publishers
06 August 2023
"I get to dive into countless books, and I must say, this one

is an absolute delight. No need for any unnecessary delay, let me

give you a sneak peek into what makes it so worthwhile. Are

you ready? Let's jump right in with the introduction!.

Welcome to

the world of financial markets, where intricate systems and economic principles shape the

way assets are traded, prices are determined, and market structures evolve. This book aims

to shed light on the complex interplay between microeconomics, finance,

macroeconomics, and information systems within the context of trading, liquidity,

transaction costs, and market structure. By exploring these subjects through the lens of the

equity market and incorporating the impact of trading costs and other impediments, we

uncover a deeper understanding of real-world market dynamics.

One of the common

threads that binds these diverse topics is our focus on the effect of ""frictions"" on market

outcomes. These frictions encompass the various barriers and limitations that affect

trading activities, such as transaction costs and regulatory constraints. By delving into

these impediments, we gain valuable insights into how they shape market behavior and

influence market participants' decision-making processes.

In this book, we also introduce

an interactive simulation model of equity market trading, providing you with a unique

opportunity to engage with the material in an informative and enjoyable way. Through

this simulation tool, you can actively explore the intricacies of market dynamics and

deepen your understanding of how real-world markets function.

Each chapter in this book

has been carefully designed as a standalone module, making it suitable for integration into

existing finance, economics, or information science courses. However, while each chapter

can stand on its own, there are interconnected themes and concepts that weave

throughout the entire book. By reading the entire work, you will gain a more

comprehensive understanding of the workings of a real-world financial market.

Let us

begin our journey with Chapter 1: ""Understanding Economic Behavior."" In this

microeconomics chapter, we challenge the commonly held assumption of frictionless

markets and explore its implications. By comparing the Capital Asset Pricing Model and

the microeconomics consumer choice model, both built on the assumption of frictionless

markets, we uncover the optimal decision-making processes of investors and consumers.

However, when analyzing the equity market, we introduce the real-world constraint of

order submission, limiting each participant to a single order. This constraint allows us to

demonstrate how prices in the financial marketplace can differ from the theoretically

derived equilibrium values of a frictionless model."

By:  
Imprint:   Elio Endless Publishers
Dimensions:   Height: 229mm,  Width: 152mm,  Spine: 7mm
Weight:   181g
ISBN:   9789513090319
ISBN 10:   9513090310
Pages:   116
Publication Date:  
Audience:   General/trade ,  ELT Advanced
Format:   Paperback
Publisher's Status:   Active

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