Trading articles
2 articles in Trading, newest first, with the mechanism behind each one shown in full.
- Trading6 min read
Why crypto prices differ between exchanges, and what the gap measures
Five venues priced Bitcoin within 0.042% of each other and Zcash within 0.426% — ten times wider, at the same instant. The gap is not error. It is a liquidity reading, and it is the most useful number on the screen.
- Trading7 min read
The position size formula most people use understates the loss every time
Position sizing is one division, but the version most traders use quietly ignores fees and understates the loss. Here is the formula, where it comes from, two worked examples with every number shown, and the mistakes that actually cost money.