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Right, so complaining about "hidden" orders is useless. The problem lies with the exchange, not the strategy.
by jsprogrammer 11y ago
Right, so complaining about "hidden" orders is useless. The problem lies with the exchange, not the strategy.
- ikeboy 11y agoThe problem is the combination of two orders, which serves to mislead the market. Merely making hidden orders would be fine, making hidden orders, then making another order meant to mislead other traders is not fine. I agree the line isn't so clear.
- jsprogrammer 11y agoAny misdirection seems to be the fault of the exchanges. Isn't it common to both buy and sell contracts in complex arrangements, where various aspects of each individual transaction "cancel out" other aspects of other transactions? Assuming you buy 1000 contracts and sell 1, you are net 999 contracts? How is that different from any other options trading strategy?
- ikeboy 11y agoFor one, the two were made from different accounts, which is suspicious by itself. If you submit from a single account, you generally can't trade against yourself. Second, the buy and sell are the exact same price. So there's no legitimate reason to both buy and sell at the same price.