3 ms·
Oh, you mean because of the added latency on the dark pool check? As I understand the mechanics of these, it's as follows: 1) Place an order. 2) Broker checks
by yummyfajitas 12y ago
Oh, you mean because of the added latency on the dark pool check? As I understand the mechanics of these, it's as follows:
1) Place an order.
2) Broker checks the darkpool - if a match is found, trade internally.
3) Route to the public market.
Step 2 can add latency, reducing your fill rate. So can playing music on youtube while doing step 1 probably adds more latency. And the latency in both cases is vastly lower than the latency you get from trading over 3g (robinhood is a mobile app, which to me seems moronic).
- kasey_junk 12y agoWell latency is the easiest scenario to conjure (and I agree with you about it not being an issue). Another way you could see worse fill rates would be a customer places a limit order that puts them somewhere back in the book. This limit order happens to trigger some threshold for the order flow trading algorithm that causes it to back off of it's own orders (lets say it cancels some orders on the back of the other side of the book). This in turn causes a price shift that moves away from the customers limit order making it fill later. Clearly we are in the realm of pure speculation and probably not something that is important to the customers of robinhood. I was just pointing out that conceptually, by selling their order flow, robinhood could impact fill rates. My guess is that this is more than offset by the lack of fees.