In the previous question, what do you do to the bid-ask spread to induce more trading volume

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In the previous question, what do you do to the bid-ask spread to induce more trading volume in your $/_€ currency book?

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As a currency trader, what would you do to your quoted foreign exchange rates in the $/€ market if you wanted to sell down your position in euros? Assume that the current bid-ask in $/_€ is 1.20–1.25.

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 11, 2024 09:03 AM

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As a currency trader, what would you do to your quoted foreign exchange rates in the $/ market if you wanted to sell down your position in euros? Assume that the current bid-ask in $/ is 1.201.25.
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In the previous question, what do you do to the bid-ask spread to induce more trading volume

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Using similar logic now you also make it attractive for the market to sel...View the full answer

Derivatives Principles And Practice

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