Volatility vs 'Sideways' markets

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nigelk
Posts: 469
Joined: Wed Apr 15, 2009 11:00 pm

What market is better to trade?

A) a stable market where there is only a 6 tick difference between the top and bottom.

or,

B) a volatile market where there is a 26 tick difference between top and bottom?

Now what's the price difference between

A) £4.00 and £3.75

and

B) £2.00 and £1.75

25p. In both cases, they are exactly the same.

Which is the answer to the first question.

So when laying/backing at the smaller prices, expect more 'volatile' (but as we've seen), perfectly normal, sideways price movements.

From 4 to 3.75 6 ticks
From 3 to 2.75 13 ticks
From 2 to 1.75 26 ticks
Nero Tulip
Posts: 708
Joined: Wed Apr 15, 2009 5:29 pm

Not entirely sure what you are saying Nigel. Can you explain further ? You seem to answer your own question, but not sure I follow. :)
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