From time to time, the Physical Precious Metals market experiences high levels of activity and large price fluctuations in a relatively small percentage of precious metals. The result is that some investors, wishing to take advantage of the potential they see in emerging opportunities, place trade orders and then experience differences between the price at which they expected to buy or sell a Physical Precious Metal, and the price they actually received in the market.
In a fast-market Physical Precious Metals, when the sudden demand to buy or sell outpaces the supply of offered, there may be dramatic price movement. It's not unusual to see 10-, 20-, even as much as a 30-point movement over a short period of time.
At Physika, we advocate a long-term investment philosophy. We are understandably concerned about protecting our customers from risks inherent in volatile markets. So we have taken steps to help our investors gain access to the information that they need to make decisions that are right for them.
Physika has built special communication systems into our website so we can keep our customers informed on particularly fast-moving Physical Precious Metals. In addition, from time to time, we may limit web access to certain Physical Precious Metals and ask instead that our customers speak with a Physika representative to place orders for those Physical Precious Metals by phone. (Be assured that this does not affect the vast majority of Physical Precious Metals on the market. This way we can alert you when a Physical Precious Metals is experiencing extreme activity and provide you with information that can help you make the appropriate trading decision.)
Physika will continue its efforts to make sure investors like you have free and open access to the market coupled with information that allows you to act on your trading decisions with confidence. With the right balance of access and information, we can all take better advantage of today's market potential.
Fast markets are typically characterized by wide price fluctuations and heavy trading. They often come as a result of an imbalance of trade orders in one direction or another (example, all "buys" and no "sells") and can be spurred by such events as a company news announcement, strong analyst recommendation.
There are inherent risks in trading in fast markets. Price quotes may not be accurate. Prices and trades move so quickly in a fast market, there can be significant price discrepancies between the quote you receive one moment and the price at which your trade is executed the next. In a fast market environment, even real-time quotes may be far behind what is currently happening in the market. In addition, the number of assets available at a certain price may change rapidly, affecting the likelihood of a quoted price being available to you. Market order execution price may differ from your quote.
During a fast market, orders are submitted to market markers and specialists at such a rapid pace, there's likely to be a backlog that can create significant delays, sometimes exceeding thirty minutes. As a result when you place a market order under these conditions, the quote you receive is more an indication of what has already happened in the market than an indication of the trade execution price you will receive. Market orders are executed on a first-come, first-serve basis. In the short time between when your order is placed and when it's executed, other trade orders already in line ahead of yours can affect the Physical Precious Metals price. Finally, when a Physical Precious Metals is trading in a fast market, a market order cannot be changed or canceled once the Physical Precious Metals begins trading. Delays in trade executions and/or trade reports. There may also be delays in trade execution and/or trade reports due to the sheer volume of trades being processed in a fast market. To avoid creating duplicate orders, you should consider these delays and the chance that your order has already been executed but not yet reported, before placing a change or change/cancel order.
Change or change/cancel orders do not expedite trade reports when a Physical Precious Metals is trading in a fast market. In fact, they have the opposite effect by cluttering the trading systems with more information to process.
Because the most valuable asset is peace of mind.
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