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80% are losing who the hell is winning and how? I fell like they are cheating or have some sort of advantage that is not easily available to private day traders
by wehadfun 10y ago
80% are losing who the hell is winning and how? I fell like they are cheating or have some sort of advantage that is not easily available to private day traders and no I don't think that advantage is a PHD and fast data connection.
- 3chelon 10y agoThe spread betting companies are winning, of course. They are the market makers and they can manipulate the market as much as they like, even pushing the price up or down temporarily to hit stop loss orders and the like. And of course they adjust the spread to suit them, esp. in equities. I always thought the safest markets are forex because the huge liquidity tends to limit the spreads somewhat, but I have no idea if that is actually true.
- randartie 10y agoOkay, but there's plenty of highly liquid things to trade. For example the SPY has a spread of 1 penny, same with SPY options. You mention a potential strategy for manipulating the market like pushing prices to hit stops, well if these strategies are common then it seems there exists a potential strategy to take advantage of this. It seems like so long as the market's next tick price is not completely uncorrelated from its previous tick price, then there will always be a way to 'beat' the market. The market price is not completely uncorrelated (as you mentioned, there's price manipulation driving it to certain prices throughout the day).