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In practice I've never heard anyone use the word "natural" in regards to price movement in a tradeable product, not in the five years I've been working in the f
by hellofunk 11y ago
In practice I've never heard anyone use the word "natural" in regards to price movement in a tradeable product, not in the five years I've been working in the financial industry. Sounds like more of a layman's term, perhaps. But the line between short-term and long-term movements is nearly non-existent since one typically affects the other, and the idea that there is any sense of normal price movement that lies behind all that turbulence is fairly naive.
- Retric 11y agoIt is a defined term, but I think trymas is referring to the layman's usage. "natural price" https://en.wiktionary.org/wiki/natural_price https://en.wiktionary.org/wiki/natural_price A price for a good or service that is equal to the cost of production.
- hellofunk 11y agoOh well that is a totally different term than the context it is being used in here.