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observers, a better quality market. (10 marks) a) Describe how tick size affects the significance of the time precedence rule. (2 marks) b) Suppose that
observers, a better quality market. (10 marks) a) Describe how tick size affects the significance of the time precedence rule. (2 marks) b) Suppose that the minimum tick size were further reduced to 0.00000001 for all stocks. How or why might such a small tick size worsen markets and reduce quaring? (4 marks crypto pairs and crypto to fiat pairs) on bid-ask spread and depth. The following graph catches your attention. You attempt to use the knowledge learnt in this unit to understand the graph. Figure 5 Cumulative depth, pre and post the tick size increase Cumulative depth pre and post tick size increase. All prices are converted to dollars and then normalized to a midpoint of $10. The graph is aggregated across all pairs. The cumulative depth is in units of the currency pair. The black and gray lines depict the pre-event and post-event spread and depth, respectively. solid dotted observers, a better quality market. (10 marks) a) Describe how tick size affects the significance of the time precedence rule. (2 marks) b) Suppose that the minimum tick size were further reduced to 0.00000001 for all stocks. How or why might such a small tick size worsen markets and reduce quaring? (4 marks crypto pairs and crypto to fiat pairs) on bid-ask spread and depth. The following graph catches your attention. You attempt to use the knowledge learnt in this unit to understand the graph. Figure 5 Cumulative depth, pre and post the tick size increase Cumulative depth pre and post tick size increase. All prices are converted to dollars and then normalized to a midpoint of $10. The graph is aggregated across all pairs. The cumulative depth is in units of the currency pair. The black and gray lines depict the pre-event and post-event spread and depth, respectively. solid dotted
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