Module: Math::Finance::Forex

Defined in:
lib/ruuuby/math/finance/forex.rb

Overview

“relative values of currencies are generally expressed to four decimal places”

‣ | tick | the change in price that a commodity receives after a set of transaction(s) | ex: EUR/USD has ‘> 100 ticks per minute` during timings in the day w/ high liquidity |

‣ conditionally observable ‘feature’/dimension (conditional as presence of comparable data allows for normalization and thus easier to extract meaning):

‣ in general: inverse relationship between `bid-ask spread` and `liquidity`
  ‣ `➚ liquidity` : `bid-ask spread ↘`︎
  ‣ `↘ liquidity` : `bid-ask spread ➚`︎
‣ in general: direct relationship between `liquidity` and `certainty`
  ‣ `➚ liquidity` : `certainty ➚`
  ‣ `↘ liquidity` : `liquidity ↘`

‣ in general: a relatively direct relationship between P/E and ‘expected growth rate`

‣ `➚ P/E` : `expected growth rate ➚`
‣ `↘ P/E` : `expected growth rate ↘`

‣ w/ n currencies there exists ‘n² - n` exchange rates

‣ helpful resources from ‘National Futures Association (NFA)`:

See Also: