True or false, Currency forwards are more liquid than currency futures, which are more liquid than currency options.
If false, state why.作者: jmh530 时间: 2011-7-11 19:37
What is less liquid, and why is it less liquid?作者: Unforseen 时间: 2011-7-11 19:37
Futures are more liquid than forwards are more liquid than options作者: NakedPuts2011 时间: 2011-7-11 19:37
Why are fowards more liquid than options?作者: Zestt 时间: 2011-7-11 19:37
currency forward dominate the market...作者: lcai 时间: 2011-7-11 19:37
Interbank currency forwards do more notional volume in one day than the entire market cap of the NYSE. That's serious liquidity. On the other hand, call your broker and tell him you want to do an Interbank trade and he will laugh at you which is really poor liquidity. Go figure.作者: bodhisattva 时间: 2011-7-11 19:37
JoeyDVivre Wrote:
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> Interbank currency forwards do more notional
> volume in one day than the entire market cap of
> the NYSE. That's serious liquidity. On the other
> hand, call your broker and tell him you want to do
> an Interbank trade and he will laugh at you which
> is really poor liquidity. Go figure.
I will do as many as you want. 10MM minimum notional with 1.5MM collateral for daily mark to market.
I have seen them for 2-5MM but in that case you are better off using the futures market, because the counterparty bank is going to rip you.
Edited 1 time(s). Last edit at Tuesday, May 24, 2011 at 09:57AM by Paraguay.作者: PalacioHill 时间: 2011-7-11 19:37
wow i would have totally said futures > forwards and felt confident about it .............thanks guys yet another thing to rererereread作者: aidebaobao 时间: 2011-7-11 19:37
cookthebooks this is jogging my memory i think thats it作者: Iginla2011 时间: 2011-7-11 19:37
I thought
futures > options > forwards
OTC forwards dominate the markets, but when I think about liquidity (the ability to sell w/o losing value) I feel like futures are more liquid based on the standardized contract and exchanges they trade on.
