Recent content by AlphaRocks

Legs are being managed separate for profits, right, that was the assumption.

you completely missed the point of legging out of the trade -- that makes the spread irrelevant. Let's say that I'm making the market and take the other side of the trade, after the fill, I can immediately close that short leg (customer long leg) for .35 and lock a profit of 4.50.

No, re-read and you'll understand.

it's about the MM taking the other side of the high prob leg (your long leg == MM short leg) at a price designed to make them a profit higher than the .35 you anticipated in risk on that leg.

I think everyone is in agreement that you got filled at the market, using NBBO, so not a scam, even if you didn't get the fair price at the MID. However, there's a scam in the options world, that people should be aware of. I use both TOS and IB and I've only experienced this with IB and its...

I think it makes it more likely to hike, but not exactly "on track". The fed also looks U6 which improved a bit: The fed futures probability of hike for March is at 2% and 36% for June.

I think most investors don't; but some Traders do, and some focus on them exclusively (but I don't recommend that). I think the primary reason some traders choose to trade them is because of their small float. This allows a few players, or a single large player, to have a big impact on the...

With NIRP the BOJ is sending a clear signal that it wants investors to move to riskier assets, and NIRP is also a covert way to devalue the currency, so these factors combined should, in theory, push the price of financial assets higher. And of course NIRP is a concern, and we don't even know...

You mentioned that NIRP will cause "massive amounts of inflation", if that does happen, then Kuroda would have been very successful in meeting the BOJ goal to raise inflation. BTW, this means higher asset prices, so the Nikkei should go up. And as soon as they get to their 2% target they would...

The best way to learn exactly how they do it, it's to go work at an HFT firm or hire one of their programmers. Some of the terms you might want to google for is "dark pool pinging", and "latency arbitrage" -- most retail traders fall pray to latency arbitrage and don't even notice, and when...

You don't have to believe anything I say; personally, I'm always skeptic of anything I see on ET. However, after you spend some time learning about HFT and its impact on the markets you might reach a similar conclusion as me. I don't have access to sub-second quotes and trade info, so I can't...

It's the same discussion, intraday patterns and trading in general has changed because the behavior of liquidity has changed. And this it's a problem for all traders and investors, small traders might not see it (fractions of a penny per share), but that doesn't mean they're not getting ripped off.

The HFT liquidity is there only if it's profitable for the HFT to provide the liquidity, when is not profitable, there's no liquidity. HFT's don't have "affirmative obligation" like traditional market makers which requires them to quote two-sided markets at all times, even when they rather not...

They were not left on the table, they went to the investor/trader, since they only dealt w/the specialist they got matched at the exchange. Now, there's a chain of intermediaries, from brokers sending trades to gain payment for order flow (like TDA-Citadel relationship), to HFTs jumping ahead of...

I think it applies to all FINRA regulated brokers, which is all legitimate brokers in the USA.