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Also stuff like this only works in simulations, the actual trading fees make this totally unpractical.
by xal 17y ago
Also stuff like this only works in simulations, the actual trading fees make this totally unpractical.
- Imprecate 17y agoLiquidity providers get paid to trade on most exchanges (maker-taker model). ETA: That's not to say this is a good book. It's not. I'd recommend Vidyamurthy's Pairs Trading and Harris's Trading and Exchanges, but there really aren't many good books on this style of trading--anyone who knows how to do it well has no incentive to write a book on it.
- jbooth 17y agoNot if you're a giant broker with servers co-located in the same DC with the actual exchange. The rest of us can go pound sand though.
- Imprecate 17y agoGiant broker = small privately held company? The biggest players in this game are not massive NYC investment banks.
- jbooth 17y agoWell.. the biggest player in the game is Goldman. But, you're right in that there are a bunch of small hedge funds that are operating in this market, too. Still doesn't make it very accessible for those of us without a boatload of money up front to get access.
- Imprecate 17y agohttp://www.nasdaqtrader.com/trader.aspx?ID=topliquidity http://www.nasdaqtrader.com/trader.aspx?ID=topliquidity GS isn't even top-5 on NASDAQ. Professional trading was never cheap. The barrier to entry for becoming a high-frequency trading firm is much, much lower than becoming a NYSE specialist was a decade ago. You could co-locate there for a few million dollars, which is small money all things considered.
- joe-mccann 17y agoTop-5 in LIQUIDITY PROVIDERS, not necessarily the same as in programatiC/algo trading. Goldman tops the list and anyone that's traded on a prop desk knows how much influence they have on the domestic equities market: http://subprint.com/u/28 http://subprint.com/u/28