5 ms·

Flow from other HFT / market makers is often very toxic. They are playing the exact the game as you.

• hchz 4y ago
  Right, sure, and that game is not lifting the market, generally speaking.
  • smabie 4y ago
    Not aware of a market maker that also doesn't take liquidity as well. In fact, it probably would impossible to market make without also taking (you wouldn't be able to provide liquidity if your quotes were in cross with the market). That said market makers do a lot more making than taking.
  • twic 4y ago
    Other market makers are often moving away from something they've seen but you haven't yet. When whatever that is hits you, the fills you got from the other market maker will look really bad.
    • matred 4y ago
      Sure, but those short-term active strategies have little impact next to what big paper will lift in major macro markets.
      • smabie 4y ago
        Not sure exactly what you're trying to say but let me tell you, fills from other HFT firms are highly toxic.