What strategy you use if the trade is urgent and of high volume?
A) VWAP
B) IS
C) ECN
D) Broker
E) None作者: PalacioHill 时间: 2011-7-13 17:24
Vegas Wrote:
-------------------------------------------------------
> What strategy you use if the trade is urgent and
> of high volume?
>
> A) VWAP
> B) IS
> C) ECN
> D) Broker
> E) None
F) Not enough info作者: bkballa 时间: 2011-7-13 17:24
skillionaire Wrote:
-------------------------------------------------------
> Vegas Wrote:
> --------------------------------------------------
> -----
> > What strategy you use if the trade is urgent
> and
> > of high volume?
> >
> > A) VWAP
> > B) IS
> > C) ECN
> > D) Broker
> > E) None
>
>
> F) Not enough info
What additional info you need? Or assume whatever you like.
(this is a made up question....)作者: Darien 时间: 2011-7-13 17:24
in the real world you would call a trading desk and do a principal transaction with either JPM, GS or MS.作者: mcmc 时间: 2011-7-13 17:24
So the answer is use a broker? Thanks.作者: susana 时间: 2011-7-13 17:24
IS good for:
1) urgency to trade is high
2) bid/ask spread is low
3) even intra-day trading voluming pattern fo the stock
VWAP good for:
1) urgeny to trade is low
2) order size is small
3) bid/ask spread is low
Brokers good for:
1) lot size is big
2) bid ask spread is large
3) market liquidity sux
so based on these I would probably go with broker.作者: nannan66 时间: 2011-7-13 17:24
i would go with a principal trade. urgent trade can also imply sensitive stock information that needs to be traded on instantly ... as volume is large, perhaps the principal is willing to take a large position (not ordinarily avbl in market) for a relatively biger commision. Still information value should outweigh the cost.作者: Windjammer 时间: 2011-7-13 17:24
I think the only factor that affects the choice between IS and VWAP is the level of urgency.
Any volume greater than 10% of adv means neither is useful.作者: Zestt 时间: 2011-7-13 17:24
IS if sending through algos. Best bet is probably principal trade.
Edited 1 time(s). Last edit at Wednesday, June 2, 2010 at 07:02PM by 1morelevel.
