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It seems like the real fix would be to have a cancellation fee. If an order is canceled within 60 seconds, penalize the trader .1% of the total amount of the or
by devinhelton 11y ago
It seems like the real fix would be to have a cancellation fee. If an order is canceled within 60 seconds, penalize the trader .1% of the total amount of the order. That would make all this gamesmanship unprofitable, and the order book would actually be a collection of people wanting to buy and sell shares.
It seems very wrong to me to make an activity feasible, and allow it to be profitable, but then arbitrarily drop the hammer of criminal penalties when a trader crosses some murky line.
- pas 11y agoThere already is. If you add liquidity you get a bit of a bonus, if you remove it (cancel your limit order), you are charged a small amount. Why are people so fixated on the order book? The real information is the spot price and how fresh is that information (and the volume), the order book is a fantasy anyhow. There are people willing to buy stuff at pennies always, and sell at thousands. How does that help you? What if they cancel? It shouldn't matter if someone does it closer to the spot price, or closer to the best bid-offer. If you want to buy, look at the price, decide how much you think it's worth, put in a limit order at that price. Go to bed. If you want to sell, basically do the same. If you want to live on trading, then smarten up.