Syndicate
Constant Contracting
The constant contracting is structured in three modalities or submarkets:
Lot market: the negotiations are done by lots or multiple of lots (100 shares, 50 shares, 25 shares, depending on the price of the share in question). The determination of prices is done by the confrontation of proposals of different signs (buy/sell), in a way that the counterparts that permit to close operations are distributed, in whole lots, depending on their rate of price. In case of equal prices the temporary priority will be taken in account.
Peak market: the amounts negotiated are inferior to that of a lot. Its proposals must be limited and must be executed totally or partially before the appearance of proposals of contrary signs. You must notice that at the peak and lot markets there are possibilities for arbitrage between them.
Special terms market: orders are traded “all or nothing” or with specialties: instructions with a differential against the investor, proposals that must be executed by a minimum volume of lots ad at prices that won’t need negotiations at the lot market, etc.
We must emphasize that the peak and special terms markets are marginal in comparison with that of the lot market.
Beginner Money Investing Why Invest Understanding The Economy Investment Companies How to Invest in Stock Markets Market & Stock Negotiation Understanding Stock Markets Stock Markets Bulls & Bears PE Ratio & Stock Valuation What are Dividends Types of Dividends Stock Dividends and Stock Splits Stock Split Property dividends Investing in Common Stocks Large, Medium and Small-cap Stocks Investing in Preferred Stock Cumulative Dividend Call Provision Treasury Government Mortgage-Backed Securities Corporate & Municipal Bonds Investing in Bonds Investing in MicroCapStocks Real Estate, Metals and Collectibles Options, Calls/Puts Writing Contracts Investing with Options Stock Market & Futures Futures, Contracts Speculating Investing in Precious Metals Gold Prices VS United States, China and Japan Contact
