3 ms·
I don't know if it's the case but if you paid a higher rate of commission/fees on flash orders then it might be the case that the general market is getting slig
by andrew1 16y ago
I don't know if it's the case but if you paid a higher rate of commission/fees on flash orders then it might be the case that the general market is getting slightly worse prices but at the advantage of lower fees. Which could make it beneficial for general market participants. As I say though, I don't know if this is the case.
- yummyfajitas 16y agoFlash orders have lower commissions, and always give the best available price[1] to the buyer. The mechanics: best asking price is 10.0 on INET, 9.90 on ARCA. You place a buy order on INET. INET is obligated to route your order to ARCA (where the cheapest price is available) rather than filling it at 10.0 locally, and you get charged 9.90 + routing fee [2]. If INET flashes your order, it gives an HFT trader on INET the opportunity to fill your order at 9.90. In that case, you pay 9.90 for the trade and avoid the routing fee. [1] A better price may be available on a darkpool, but the exchange would not have routed your order to the darkpool since the exchange did not know about it. [2] There are flags you can set so that your order is canceled rather than routed.
- pheon 16y agoa very one sided article there and fails to mention the algos used by your broker to minimize information leakage of your trades... if their large enough. what gets me is the amount of money HFT market makes make off your trade is tiny compared to the fist full of cash your broker is taking from you..