mrchicity

16 ms·

91.
by mrchicity 10y ago
ISO limits that create a new price are usually given better priority than Hide-not-slide orders entered with the equivalent working price, even if they were accepted before the ISO limit. Depends on the exchange obviously.
92.
by mrchicity 10y ago
This strategy could work, but only on exchanges where your own private trade confirmations are faster than the public quote broadcasts, and only if you can use the information to aggressively trade a different, but highly correlated securit
93.
by mrchicity 10y ago
The idea you suggest already exits for stocks in the US with very high prices because the minimum increment doesn't scale with stock price. For example, Google is $700 a share, making the minimum $0.01 price tick equivalent to 0.0014%
94.
by mrchicity 10y ago
I'm assuming by "Joe 401k" you mean someone putting a chunk of their income into an index fund occasionally and keeping it there for the long haul. All of the innovations in the market are good for them without a doubt. Compu
95.
by mrchicity 10y ago
The price can change from the time you place your order to when it arrives at the broker. This is especially likely if you are an active trader chasing news or momentum where others are likely trying to buy at the same time. It's like
96.
by mrchicity 10y ago
I am not saying the mechanics allow front-running. It is just different from a dark pool or exchange in that the wholesaler guarantees execution and has some discretion over how to provide it. It's not as if Schwab pings a bunch of int
97.
by mrchicity 10y ago
I don't see an issue with quote matching or pennying someone's order on a public exchange. That's arguably either providing liquidity in a place where it's missing or providing price improvement, and they are at risk on
98.
by mrchicity 10y ago
That document is mostly conspiracy nonsense. Wholesalers don't need to push the price around to make money. Most retail trades are tiny, uncorrelated with future order flow, and don't have short-term alpha behind them. The wholesa
99.
by mrchicity 10y ago
You two are talking about different things. They are similar but the mechanics are different. IB's example is an internalization pool where liquidity providers may post quotes and potentially fill within the NBBO when they have a des
100.
by mrchicity 11y ago
At the level of a penny, which is what the minimum price change is on most US stocks, almost anything can affect a sophisticated market-maker or proprietary trader's pricing: information in the stock's own order book, the price of
101.
by mrchicity 11y ago
http://www.tradeworx.com/media/pdf/TWX-SEC-2010.pdf (p.13) and https://mechanicalmarkets.files.wordpress.com/2015/01/toa-ex... back up my claim that limit orders lose the spread on avera
102.
by mrchicity 11y ago
What is "latency arb" then? To "flip the spread" you need to predict where the market will go after your order gets elected. The market is pretty efficient. The average limit order loses the spread and rebates after exec
103.
by mrchicity 11y ago
Nonsense. Most HFTs are market-makers, either official or unofficial and have to predict price movements to quote competitively. If you only make quotes where you have an immediate arb in another product/exchange, you won't get ma
104.
by mrchicity 11y ago
You want it to be that way, but it's the other way. If you're just a "cog in the machine" doing research or writing software for a trader, and he ends up sucking, the firm will probably shuffle you around to work under s
105.
by mrchicity 11y ago
Yeah that sounds like complete bullshit to me. I know some top quant traders who make high-six/low-seven figure comp consistently at that point in their careers, but they're nowhere near able to retire with a comfortable lifestyle
106.
by mrchicity 11y ago
This. Radio networks are not reliable even in normal conditions due to weather conditions or environmental events. You can fail over to another network seamlessly and keep chugging. If your competitor's faster system is still up you ma
107.
by mrchicity 11y ago
This paper studies the effect of a high-frequency market maker entering the Dutch stock market: http://www.amf-france.org/technique/multimedia?docId=workspa... The trader they study reduced the bid/offer spread an
108.
by mrchicity 11y ago
If you define HFTs as passive spread/rebate-capturing single instrument market-makers, then yes, but many prop HFTs operate a "hybrid" model where they sometimes cross the spread to flatten their book, or cross if an arbitrag
109.
by mrchicity 11y ago
Public transit in major cities is a set of complex queuing systems. If a station is slower getting people out, they will crowd on the platform and create "back-pressure" on the entire system as the crowd causes incoming trains to
110.
by mrchicity 11y ago
A 10 gallon fuel cell in a race car or a 1 gallon portable gas tank sitting on a boat aren't the same as a 500 gallon homemade bladder stuffed into an overloaded passenger car. I honestly can't tell if you're being facetious
111.
by mrchicity 11y ago
According to IIROC (Canada's SEC), HFTs are active on TSX-V, but not in all stocks or to the same extent that they trade the TSX blue chips. I would imagine they'd stick with the highest volume TSX-V stocks. The ones that aren&#x2
112.
by mrchicity 11y ago
But why does that astound you or strike you as a problem? Look at any mature market and you'll find middlemen buffering supply and demand. Imagine: 50-70% of auto transactions are between dealers who don't even drive their cars an
113.
by mrchicity 11y ago
I'd argue that a robust and liquid financial market does "create wealth" in that it opens up new strategies that were previously too costly. For example, due to lower spreads, automated pricing, and decreased transaction cost
114.
by mrchicity 11y ago
Beating the point spread wagering on NFL games is also a game of skill then. There are some sports betters who are better at analyzing data than the bookies are who consistently make money. Very few games that we'd call gambling (e.g.
115.
by mrchicity 11y ago
Even if they don't control it, wouldn't a heavy user be able to build a probabilistic model of where the coins went? If you are 99% of the volume on a tumbler, you know with near certainty that your adversary's coins are bein
116.
by mrchicity 11y ago
https://en.wikipedia.org/wiki/Regulation_Fair_Disclosure
117.
by mrchicity 11y ago
Answering calls with individual investors and giving out material information is illegal under Reg FD. Not sure about this particular fact pattern, but being told something officially vs. over dinner/drinks can have a different expecta
118.
by mrchicity 11y ago
Zoning regulations deal with a classic "tragedy of the commons" problem. Nobody wants to live next to transients, but each person individually benefits from renting their property to them while they're away on business or vac
119.
by mrchicity 11y ago
Anyone buying a lot of shares will move the price up. Buffett makes money because he buys shares under their future value despite moving prices in the short-term, not because of it. Anyone can try to become as smart as Buffett, hire away hi
120.
by mrchicity 11y ago
I don't think exclusive access would be legal, and if access isn't exclusive, the value of the information would drop, as it's only valuable to the extent that it's not known by others. Also, simply being aware that such

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