What we’re reading: China’s stockmarket; How to create a new currency; Trading Leverage

Our Content Team members share articles to one another all the time. Here is a selection of what they’d recommend you to read.

Ivan DelgadoIván Delgado – Chief Editor

What’s behind China’s stockmarket roller-coaster ride?

Irrational exuberance, a phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, when referring to a market that is over-valued, could well be a line that accurately describes the current state of affairs in the Chinese stock market, not only by its prolonged rally out of touch with fundamentals, but also because is now openly seen as ‘a casino without rules’. Pretty much the same feeling I have when driving along the roads in any sub-developed Asian country, be it Bali, where I live, a good illustration. Bikes not respecting traffic lights, people not wearing helmets, kids riding bikes… Extrapolate the Bali road chaos but in Chinese equity markets, that’s the picture I get in my mind after reading the article and witnessing day in and day out irrational wild swings. Continue reading What we’re reading: China’s stockmarket; How to create a new currency; Trading Leverage

What we’re reading: Bloomberg’s terminal dominance; Virtu’s HFT business; S&P CEO’s; Varoufakis and Pulp

Here you have a few articles that our content team has read lately and recommends you!

Gus FarrowGus Farrow – Analyst and Chief Editor

To arms, to arms! The world’s biggest financial firms rise up against Bloomberg’s terminals

A key trend seen so far this century is the commoditization of industry. Financial markets are no exception.
We should not expect a complete revolution, but rather a slow draining of the protective moats of industry leaders. While competition is always the key to improving efficiency, we should not be so excitable as to imagine that change will come without wider repercussions.
Right now a status quo has existed in the market place for decades. A new normal will not be without casualties, and the ability to adapt to the rate of change will determine who will be tomorrows thought leaders. Continue reading What we’re reading: Bloomberg’s terminal dominance; Virtu’s HFT business; S&P CEO’s; Varoufakis and Pulp

What we’re reading: Banks owing money to borrowers; Japan biggest US creditor; Durckenmiller’s interview; Women on banknotes

Here you have a few articles that our content team has read this week and recommends you.

Gonçalo MoreiraGonçalo Moreira, CMT – Content Advisor

Tumbling Interest Rates in Europe Leaves Some Banks Owing Money on Loans to Borrowers

In monetary economics, the quantity theory of money states that money supply has a direct, proportional relationship with the price level.  That is, if the currency in circulation increased, there would be a proportional increase in the price of goods, what is called inflation.
In many countries now, banks will pay you for the privilege of borrowing money. This is a world in which banks don’t want your money. ZIRP – or below zero- politics  are intended to make banks averse to hoarding cash and force them to lend it to entrepreneurs. Continue reading What we’re reading: Banks owing money to borrowers; Japan biggest US creditor; Durckenmiller’s interview; Women on banknotes