MoneyTec.com Traders Community Forum - View Single Post

Marty · 13-01-2003, 06:07

Example, Reuters will use a chart point for say high or low by the actual rate that you can physically trade.

So if the Market hits say 27-30 and there is an offer in the Electric broker at 30, then 30 will be classed the high as it traded there.

If its 27-30 but theres no real offer to buy at 30 then 27 will become the high.

This technique is used for the large option deals, especially knock-out/Ins options

Reuters also look to see if theres a genuine bid/offer in the market or traded on the electrics, EBS,2002/2003, because for example if you were protecting or working a large stop or knock-out/in option you could say bid or offer USD 1 MIO well below or above the market and trigger that deal.

There are sometimes discrepencies on high and lows and they always involve arguements over stops, believe me, but in general all the Electric and voice brokers in London can agree on highs and lows.

13-01-2003, 06:07	#5 (permalink)
Marty level 1 Join Date: Oct 2002 Posts: 44 Rep Power: 0	Chart prices Example, Reuters will use a chart point for say high or low by the actual rate that you can physically trade. So if the Market hits say 27-30 and there is an offer in the Electric broker at 30, then 30 will be classed the high as it traded there. If its 27-30 but theres no real offer to buy at 30 then 27 will become the high. This technique is used for the large option deals, especially knock-out/Ins options Reuters also look to see if theres a genuine bid/offer in the market or traded on the electrics, EBS,2002/2003, because for example if you were protecting or working a large stop or knock-out/in option you could say bid or offer USD 1 MIO well below or above the market and trigger that deal. There are sometimes discrepencies on high and lows and they always involve arguements over stops, believe me, but in general all the Electric and voice brokers in London can agree on highs and lows.