NO.PZ202110140100000204
问题如下:
Bloomfield’s trading strategy for the purchase of AXZ shares most likely includes the use of:
选项:
A.flickering quotes. B.machine learning. C.leapfrogging quotes.解释:
A is correct.
Flickering quotes are exposed limit orders that electronic traders
submit and then cancel shortly thereafter, often within a second. Electronic
dealers and algorithmic buy-side traders submit and repeatedly cancel and
resubmit their orders when they do not want their orders to stand in the market; rather, they want other traders to see that they are willing to trade at the
displayed price. Bloomfield does not want his orders to stand in the market;
using flickering quotes to purchase AXZ shares would satisfy that objective.
B is incorrect because AXZ shares are currently in a period of high volatility,
so Bloomfield would not likely use machine learning to execute his trades.
Machine-learning systems frequently do not produce useful information during
volatility episodes because these episodes have few precedents from which
the machines can learn. Machine-learning methods produce models based on
observed empirical regularities rather than on theoretical principles identified
by analysts. Many traders shut down when volatility spikes, both because highvolatility episodes are uncommon and thus not well understood and because
even if such episodes were well understood, they represent periods of exceptionally high risk.
C is incorrect because market participants use leapfrogging quotes when spreads are wide (not narrow), and Bloomfield noted that the bid–ask spread for AXZ shares is narrow. When bid–ask spreads are wide, dealers often are willing to trade at better prices than they quote. They quote wide spreads because they hope to trade at more favorable prices. When another trader quotes a better price, dealers often immediately quote an even better price. If the spread is sufficiently wide, a game of leapfrog may ensue as the dealer jumps ahead again.
可以解释下这道题目么,没有看懂题目的条件和答案,谢谢