2 ms·
In reality spread would be $0.01 or 0.02 and these two investors would meet in the middle. Even on different exchanges. Thanks to HFT guys.
by dchichkov 14y ago
In reality spread would be $0.01 or 0.02 and these two investors would meet in the middle. Even on different exchanges. Thanks to HFT guys.
- aleyan 14y agoYes, I edited that little bit in for clarity. The part about squeezing the very last bit of the performance still stands though. Because of mid peg orders and darkpools there could also be fractional pennies which are almost always collected by HFTs. If you watch the trade tape, you may see trades happening with $.009 and $.001 sub penny amounts. These darkpool are trades where someone offers $.001 in price improvement and takes $.009 from the spread at another venue if they are lucky.