Marking to market and Trend: Difference between pages

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imported>Doug Williamson
(Classify page.)
 
imported>Doug Williamson
(Expand for bubbles, crashes and rational expectations.)
 
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The practice of revaluing securities and financial instruments using current market prices.
Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).


In some cases, unsettled contracts to purchase and sell securities are marked to market and the counterparty with an, as yet, unrealised loss on the contract is required to transfer funds or securities equal to the value of the loss to the other counterparty.
Extended trends lead to bubbles and crashes.




== See also ==
== See also ==
* [[Fair value]]
* [[Adaptive expectations]]
* [[Market price]]
* [[Bubble]]
 
* [[Correction]]
[[Category:The_business_context]]
* [[Crash]]
[[Category:Financial_products_and_markets]]
* [[Efficient market hypothsis]]
* [[Mean reversion]]
* [[Overshooting]]
* [[Random walk]]
* [[Rational expectations]]
* [[Trend analysis]]

Revision as of 09:09, 2 May 2018

Market conditions under which there is believed to be a greater probability that a subsequent price movement will be in the same direction as the previous period's price movement (rather than in the opposite direction).

Extended trends lead to bubbles and crashes.


See also