FANDOM


Bid Price

The highest price that the Market Maker is prepared to pay for a security. The bid price is the price at which a Trader can sell a security to the Market Maker

Offer Price

The lowest price that the Market Maker is prepared to sell a security. The offer price is the price at which a Trader can buy a security from the Market Maker.

Transaction

Also known as a “trade”, this occurs when a buyer and seller agree on a price to exchange a security.

Bid-Offer Spread

Also known as an “edge”, this is the difference between the Market Maker’s bid price and offer price.

Transaction Profits

When a player buys a security for less than its ultimate value (or sells a security for more than its ultimate value), the player earns a profit.

Transaction Loss

When a player buys a security for more than its ultimate value (or sells a security for less than its ultimate value), the player earns a loss.

Overall P&L

The summation of transaction profits and losses. If this value is positive, the player has earned a net profit. If this value is negative, the player has earned a net loss. The goal of this game is to earn the highest Overall P&L.

Liquidity

??

Hedging

??

Speculating

??