What is the ratio of the offer to cover?

The investment term, which is often associated with the auction of the Ministry of Finance, the ratio of the offer includes the number of offers that are accepted for auction divided into the number of offers that were properly submitted in connection with the auction. The calculation of the ratio to cover the offer is understood as an accurate means of determining the level of demand for auction.

The ratio is considered to be the exact meter of the current level of suitability in the auction involved. The high range of offer to cover suggests that the level of the investor's desire for this issue is very high and that there is every chance that another similar auction would result in excellent revenues. On the other hand, the ratio of the offer to cover, which is somewhat low, is a strong indicator that the current market conditions have reduced enthusiasm for this problem and that it is probably not a similar auction in the short term.

Since the ratio of the offer to cover is in such a great respect is held so many investors, it is not unusual for traders to monitor the problem of the problemI know a series of auctions before the decision to submit an offer. This is especially true for investors who are conservative. The strong and continuous performance of the problem over time suggests the presence of an investment opportunity that shows excellent long -term growth possibilities. This type of performance is important for the investor, which prefers decision -making based on solid evidence, rather than relying on methods that are based more on instinct and conjecture.

For the new investor, the offer of the offer is an excellent market indicator. The simplistic calculation of the ratio associated with relatively easy basic principles that usually support the reasons for the problem of the problem provides a perfect way to learn the HOW function of the market. As a reliable means of evaluating opportunities and planning future events, the ratio of offer to cover ideal for issuers and buyers is.