3 ms·
At least in ordinary stock exchanges with HFT, stop loss orders are perfect devices for the HFTers when the price is approaching some psychological limit (say $
by semi-extrinsic 9y ago
At least in ordinary stock exchanges with HFT, stop loss orders are perfect devices for the HFTers when the price is approaching some psychological limit (say $100), they can push the price down momentarily and buy from all the average Joes whose stop loss orders just triggered, wait for the inevitable bounce and sell at a nice profit.
- chollida1 9y agoThat isn't at all how HFT's operate. We wouldn't generally touch an order type like stop loss, heck we wouldn't generally use stop loss limit order either:)
- semi-extrinsic 9y agoI didn't mean HFTers hold stop loss orders. I mean they look for others who hold stop loss orders to try and arb them.