Hi, I'm looking to learn what I can from the weight of money this week. Despite reading up on it, I still haven't found an example that really hits home. So, with a screenshot taken just now that deliberately shows a big difference in the back and lay side, what exactly is this telling me ?
My guess here is that there is about 5 times the amount of money being put up by layers than there is by backers. To me, this would seem to indicate the price is likely to drift a bit. Would I be correct ?
Weight of Money Basic Question
If you went into that market and laid £500 you would wipe out three of those lay prices and the price would have to go up. If you backed £500 into that market nothing would change. That's the essence of weight of money.
It's always going to be more complicated than that. But that's the essence.
It's always going to be more complicated than that. But that's the essence.