3 ms·
> at prices delivered to consumers less profitable than what they realize That’s not true, HFT firms like Citadel are required to improve on the national bid/a
by drexlspivey 3y ago
> at prices delivered to consumers less profitable than what they realize
That’s not true, HFT firms like Citadel are required to improve on the national bid/ask spread. They are saving the consumers money compared to their orders being sent to NYSE or NASDAQ
- lumb63 3y agoOn a given trade, they might be required to provide a benefit to their customers, but what are they able to do with the combined data that is all the others they handle? Surely they are able to manipulate securities based on this data and short/long securities in ways that are typically in opposition to retail, thus costing their “customers” money.
- govg 3y agoHow do they "manipulate" this data in any form? That is not how any of this works, it just sounds like a conspiracy theory talking point to keep saying citadel are conspiring against everyone.
- helsinkiandrew 3y agoThis is nonsense. This isn’t a data mining opportunity. One of the reasons this works is that retail investors are relatively uninformed compared with larger players that are selling large blocks of shares. There are usually as many retail investors selling as buying smallish lots that doesn’t create a large price movement.
- jjtheblunt 3y agoHow exactly does that work? FINRA requires reasonable effort, which is curious.