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Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged. The reason why retail traders rarely s

by smabie 6y ago

Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged. The reason why retail traders rarely succeed is because the ones that are good move to the institutional level (as it is almost impossible to support yourself by trading alone). The bad ones invariably trade down their portfolio until they are forced to get a real job. This isn't to say that you shouldn't retail trade, but rather, don't rely on it as your sole source of income (unless you have at least 2mm-5mm dollars to trade with).

spaced-out 6y ago
> Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged. I won't believe this without a citation to an academic study. This affects the underlying price of raw materials, which has a direct impact on the stock price of companies using those materials. The stock price of many of those companies has a direct impact on people's retirement and the solubility of pension funds, among other things. White collar crime does has victims.
- hammock 6y ago
  Indirectly it has a small effect, and the biggest effect is on short term speculators. This becomes clear if you dig into the specifics of this particular spoofing operation
- smabie 6y ago
  It seems like you've made up your mind, even without an academic study.
  - Supermancho 6y ago
    That comment is unnecessarily inflammatory and is not constructive.
- x87678r 6y ago
  > This affects the underlying price of raw materials No it doesn't if you spoof orders it has only very short term effects.
  - egwor 6y ago
    Depends what the instrument is and when. If orders are spoofed during the start of day or end of day auctions or during other specific times when indexes are calculated then this impacts the settlement prices which has a knock on impact to other features of the market. It’s like the LIBOR rigging and the FX manipulation.

by smabie 6y ago

spaced-out 6y ago

> Retail traders are simply not affected by things like this. It's the HFT/market making firms that would be most damaged. I won't believe this without a citation to an academic study. This affects the underlying price of raw materials, which has a direct impact on the stock price of companies using those materials. The stock price of many of those companies has a direct impact on people's retirement and the solubility of pension funds, among other things. White collar crime does has victims.

hammock 6y ago
Indirectly it has a small effect, and the biggest effect is on short term speculators. This becomes clear if you dig into the specifics of this particular spoofing operation
smabie 6y ago
It seems like you've made up your mind, even without an academic study.
- Supermancho 6y ago
  That comment is unnecessarily inflammatory and is not constructive.
x87678r 6y ago
> This affects the underlying price of raw materials No it doesn't if you spoof orders it has only very short term effects.
- egwor 6y ago
  Depends what the instrument is and when. If orders are spoofed during the start of day or end of day auctions or during other specific times when indexes are calculated then this impacts the settlement prices which has a knock on impact to other features of the market. It’s like the LIBOR rigging and the FX manipulation.