http://www.cboe.com/...LE=20061213.doc
to come:more liquidity; more volatility;
Started by
jjc
, Apr 04 2007 12:24 PM
5 replies to this topic
#2
fib_1618
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Posted 04 April 2007 - 01:38 PM
You can not have more volatility with more liquidity...this is the reason why the volatility indexes have been moving lower over the last several years where the majority was assuming it meant complacency.more liquidity; more volatility
Fib
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“Wise men don't need advice. Fools won't take it” - Benjamin Franklin
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#3
jjc
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Posted 04 April 2007 - 02:26 PM
So more appropriate would have beenYou can not have more volatility with more liquidity...this is the reason why the volatility indexes have been moving lower over the last several years where the majority was assuming it meant complacency.more liquidity; more volatility
Fib
"to come:more liquidity? more volatility?"
#4
denleo
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Posted 04 April 2007 - 02:27 PM
Great point Fib. There are better indicators for complacency. Break out is coming next week. Then we will see how it behaves. I think we are on the same page.
Denleo
#5
fib_1618
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Posted 04 April 2007 - 04:28 PM
The greater the liquidity in any market of trade reduces the price volatility factor of "a" product because there is enough monetary demand to keep prices fluid. Take away this same monetary ingredient and you're left with a vacuum (because it's human nature to be initially stubborn and/or greedy) that eventually will need to be filled in order to once again provide a stable "trade balance" between buyers and sellers (volatility).So more appropriate would have been
"to come:more liquidity? more volatility?"
Fib
Better to ignore me than abhor me.
“Wise men don't need advice. Fools won't take it” - Benjamin Franklin
"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw
Demagogue: A leader who makes use of popular prejudices, false claims and promises in order to gain power.
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#6
bobalou
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Posted 05 April 2007 - 06:40 AM
this statement is so good ........it changed my view.....thx
