Fair Value is abroad measure of an asset's worth and is not the same as market value, which refers to the price of an asset in the market place. In accounting, fair value is a reference to the estimated worth of a company's assets and liabilities that are listed on a company's financial statement.
although the stock market is volatile, it is a lot like the gold market. just as there is no control in the gold market,there is no control in the crypto market because i think the market is not regulated. It's a technology where you can perceive both the pumph and the dump.
Topic: Fair Value (Read 394 times)
"Fair value is the futures rate before the market opening is adjusted for purchasing shares at the opening." Underline the sentence, then you can understand how ico goes so far. so, when the token has not been listed on the market, the token has not been valued. with the opening of the purchase and investment before the token is released to the market, the price will still be cheap. but it also depends on how the situation will be when the market opens later. if the liquidity of the token is high, then the price of the token will also be high and we can get a profit. when talking about bitcoin or etherum for which the market already exists, then the theory does not apply and the value is determined. but the value can still change, depending on the demands of the coin.
if you want to join the fair value theory waiting for the market to open, ico can be the right choice but the risk is also great.
if you want to join the fair value theory waiting for the market to open, ico can be the right choice but the risk is also great.
If there is a platform or site doing this, I don't think traders will be complaining of losing their money when trading, we should all just believe trading is a risk, just trade with caution and run for greed, then profit won't stop coming.
hi .. great topic.. just want to say that level01.io has an android beta app where you can trade with demo coins.. its a good training ground
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
With this kind of volatile market, fair value per se can't be determined, unlike any other markets we have right now. Heck, even ICO who started says that their tokens is worth this X amount. But after getting listed on an exchange, the price suddenly change for the worst. And besides, there is manipulations, wash and fake volume tradings, pump-and-dumps so its going to be difficult to answer your questions.
In financial markets, calculation of a ‘fair value’ is often a subjective matter. However, in derivatives markets no-arbitrage principles often dictate where the ‘fair value’ or, in other words, pricing should be.
Fair value is highly dependent on the spot rate. Therefore, if a retail investor submits an offer to an exchange this might be filled at a time when it is already below the fair value – an undesirable feature for investors. Such scenarios will disincentivizes them from submitting further offers to the exchange. To overcome this problem,Level01 FairSenseTM algorithm allows all investors to quote ‘relative offers’ to FairSense’s fair value. This allows investors to simultaneously compete for the best offers without overburdening them with a requirement to have their own algorithms for price estimation and implementing continuous quote updating manually.
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
With this kind of volatile market, fair value per se can't be determined, unlike any other markets we have right now. Heck, even ICO who started says that their tokens is worth this X amount. But after getting listed on an exchange, the price suddenly change for the worst. And besides, there is manipulations, wash and fake volume tradings, pump-and-dumps so its going to be difficult to answer your questions.
Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
There are some new altcoins which are backed by assets like gold charcoal, renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.
Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
There are some new altcoins which are backed by assets like gold charcoal, renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.
Yeah! That's what took my attention too. Creating way bigger ecosystem and opportunitites
Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
I have noticed some of the new altcoins are being backed by assets like gold, charcoal, renewable energy, oil and petroleum as they want their price to be based on their backed assets rather than just demand and supply which can be easily manipulated and it's good to see assets backed coin entering the market which might be a game changer if managed well.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
There are some new altcoins which are backed by assets like gold charcoal, renewable energy, oil and petroleum etc which might be the game changer as there as they will not be dependent on just demand and supply which is prone to manipulation rather they have real products to be bases upon. More investors will be attracted to these assets backed crypto than traditional one.
Most coins have no NAV (Net Asset Value) that would back their price, so to derive a fair value is incredibly hard. There are models like the one formalized by Chris Burniske (https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7), but this is based on monetary supply theory and can only be used to derive a lower bound for the price.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
The current valuations are mostly based on speculation, not the actual GDP that's being produced using them, so it gets even harder. This is why - across the field - technical analysis is what most analysts are sticking to.
Hello,
I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
Maybe I'm wrong, in my opinion the definition of fair value is the balance of prices after there is demand and supply in the market. Price balance or fair value will occur when the market is in an active condition and also a large transaction volume.
It is very difficult to calculate this, even we can do some calculation but finally it back to predict, the news may push market down or up, so calculation at this time may useless.
It is possible with an AI Trade Matching Technology and Trade Settlement on the Blockchain
This technology allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.
For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSenseTM’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.
The platform facilitates efficient functioning of a market and price discovery through proprietary developed intelligent algorithms that dynamically improve over time through machine learning. This helps retail users with trade matching, efficient price discovery and fair value analytics when conducting their trades.
Pages 5-7 in the document https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf
It is very difficult to calculate this, even we can do some calculation but finally it back to predict, the news may push market down or up, so calculation at this time may useless.
how can anyone know exactly when to buy and sell, it is only a prediction and all predictions are not necessarily true. if you want predictions from people, you can join a group that talks about pumps or something.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.
yeah, of course they are not true, people tend to think they know everything....
in this fast changing world, i hope some smart ai will help people to make better choice, not gossips or predictions
how can anyone know exactly when to buy and sell, it is only a prediction and all predictions are not necessarily true. if you want predictions from people, you can join a group that talks about pumps or something.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.
but here no one can be trusted because there is no guarantee that what he said is true. So be wise in making choices.
Thank you all! I researched a bit more, and I think it is possible for non traders to learn, or as Level01 suggested - let AI learn and help us
Quote
Good point! But, an analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and our software-development team is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind. Shortly, our Fairsense AI analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users. Specification is available here - https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf
And, here's a bit longer article about AI influence on derivatives market: https://level01.io/2018/11/20/derivatives-trading-is-on-the-edge-of-a-new-world-with-artificial-intelligence-on-level01/
Also, we're helping retail investors, people like you, to access the global derivatives market through a secure, trustworthy, automated and intelligent trading environment on Level01. This decentralises the paradigm of investment in all kinds of derivatives including options, stocks, bonds, and commodities and can fundamentally change the investment ecosystem.
---
Btw, great topic!
And, here's a bit longer article about AI influence on derivatives market: https://level01.io/2018/11/20/derivatives-trading-is-on-the-edge-of-a-new-world-with-artificial-intelligence-on-level01/
Also, we're helping retail investors, people like you, to access the global derivatives market through a secure, trustworthy, automated and intelligent trading environment on Level01. This decentralises the paradigm of investment in all kinds of derivatives including options, stocks, bonds, and commodities and can fundamentally change the investment ecosystem.
---
Btw, great topic!
Interesting! I read on the article, the WP Document is a bit too industry professional for my understanding, but as I can see your platform allow investors/traders ''to simultaneously compete for the best offers without imposing them with a requirement to have their own algorithms for price estimation and having them continuously updating the quote manually.'' If I understand good, that means we can trade even if we are new in this? Because if we can see the Fair Value graph all the time - I do not need to have some super knowledge or understanding about options and derivates trading to try? Also, I am interested is it possible to buy/sell smart contracts?
@Red-Apple please check because I agree with your comment that ''AI in its advanced way it not that advanced to do anything this complicated ''!
this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.
True
Thats what scares me. In those situations only experience helps...or, like the member above posted, AI 
I do believe AI algorithms will help us, at least, not to have tension or market manipulationartificial intelligence in its simple form can only do what people could do in a faster way not something people can't do themselves which is the case here.
and AI in its advanced way it not that advanced to do anything this complicated and if it could then it would be worth millions of dollars!
Good point! But, an analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and our software-development team is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind. Shortly, our Fairsense AI analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users. Specification is available here - https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf
And, here's a bit longer article about AI influence on derivatives market: https://level01.io/2018/11/20/derivatives-trading-is-on-the-edge-of-a-new-world-with-artificial-intelligence-on-level01/
Also, we're helping retail investors, people like you, to access the global derivatives market through a secure, trustworthy, automated and intelligent trading environment on Level01. This decentralises the paradigm of investment in all kinds of derivatives including options, stocks, bonds, and commodities and can fundamentally change the investment ecosystem.
---
Btw, great topic!
Hello,
I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
I am creating this topic to understand is it possible to achieve the fair value while trading (crypto, gold, derivatives...)? I am conducting a research at the moment, because its crazy how market can go up and down, and (after all) there are some trading strategies named 'The Fair Value Trading Strategy' like this one: https://finance.yahoo.com/news/fair-value-trading-strategy-explained-153843774.html and definition from Zacks (https://finance.zacks.com/difference-between-premarket-futures-fair-value-10349.html) ''fair value is the futures rate before market opening adjusted for purchasing shares at the opening.''
So, my question is - do you know some platform or solution which can assist us to find out when the ''fair-value'' trading moment is? Or, does anyone has some tip? Advise needed. Thanks!
Fair value is a concept that seems really good on paper to form trading signals, but in reality, probably doesn't even exist.
After all, at any given moment, the fair value is really just the market value of an asset. The demand and supply come together to form the market value, and that should be the market's equilibrium and that given moment.
I'd say just look at sentiment for starters, if you want to find whether a coin is overvalued or undervalued. If sentiment is bullish and people are FOMOing, then the coin is likely to be extremely overvalued, and vice versa. Finding "fair value" requires a ton of modelling that I don't think casual traders are simply up for.
After reading ??$190 Million in Crypto Gone Forever, How Canada?s Biggest Bitcoin Exchange Lost it All?? or ??Exit Scam? Crypto Exchange Delists High-Profile Tokens & Users Allege Sell-Off??, of course the trust if questioned. Constant manipulations and fraudulence are devastating the market.
this strategy with all its definitions and any other trading strategy that you can find out there are all defined for a market that has little to no manipulation in it. markets such as stocks market, gold market,... which even though have manipulation but the power of it is minimal.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.
but when a market (like the altcoin market) is dominated by manipulation and is completely unpredictable no strategy could work in it no matter the type of it.
True
Thats what scares me. In those situations only experience helps...or, like the member above posted, AI I do believe AI algorithms will help us, at least, not to have tension or market manipulationartificial intelligence in its simple form can only do what people could do in a faster way not something people can't do themselves which is the case here.
and AI in its advanced way it not that advanced to do anything this complicated and if it could then it would be worth millions of dollars!
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