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What is Premium and Discount Zones?

Charts

비싼 구간과 싼 구간

Prices marked up or marked down relative to fair value. The area above the equilibrium price is the premium zone and the area below it is the discount zone. They arise because sellers want to sell at a markup and buyers want to buy at a markdown. The basic way of thinking is to look for places to buy in the discount zone and places to sell in the premium zone. Two families of theory point to the same place in using the halfway point as the reference. A first check is which zone the current price is in.

Premium and Disco…above fair value — a stretch to look for a place to sellbelow fair value — a stretch to look for a place to buythe basis is the midpoint alone

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Premium and Discount Zones meaning — Trading glossary | MarketSurfer