2 ms·
Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of
by DyslexicAtheist 6y ago
Step 0: Citadel pays Robinhood for order flow. Citadel gets to see RH's orders a few milliseconds before they're filled. Citadel may choose to front-run some of those trades.
Step 1: RH's customers and WallStreetBets start manipulating $GME. This is happening in the open.
-- https://twitter.com/toxic/status/1353890766800621569 https://twitter.com/toxic/status/1353890766800621569
- coredog64 6y agoDueling Twitter posts: https://twitter.com/matt_levine/status/1354129838806872073?s=21 https://twitter.com/matt_levine/status/1354129838806872073?s... I’m gonna go with Matt Levine over a Twitter rando, especially since the step 0 notes something that is explicitly illegal (front running)
- clevernapkins 6y agoFront running is illegal indeed. But it would be possible to use Robinhood's order flow data to detect momentum and decide to hold a position from that. Small difference but the effect is the same