Recent content by EnergyTrader

Most brokers will hold the cash you get from the short sale in an account that earns no interest, unlike the big traders that get to earn interest on the proceeds. However you can achieve what you want by shorting the corresponding futures contracts, which not only effectively pays you interest...

The SEC specifically allows orders to be internalized as long as there is at least a 1c price (0.01 cents/share) price improvement. This is clearly unfair to retail limit orders, but the dark pools/ market makers and brokers/internalizers have more clout than retail and institutional traders and...

Can anyone explain why a Bank would lend Federal funds (excess reserves) to another Bank at 0.38% when they can just park it at the Fed and collect 0.50% on excess reserves ? Found the answer on the Fed website: "While IOER (interest on excess reserves) has been effective at influencing the...

Note that the Federal Funds rate has not been below 0.25% in the last several years. It just went up to 0.50% in Dec. The Fed is paying 0.50% on all required AND excess reserves of Banks, which puts a floor on the Federal Funds rate. Congress needs to outlaw paying any interest on excess...

If you are referring to GTC limit orders, I don't see how abolishing them reduces Trade through violations, since brokers will still offer GTC orders that are resubmitted daily as limit orders. The only real change here is the HFT get to jump ahead of your GTC order, either because their daily...

Good point. However, that would be a better scenario than the worst case one I mentioned since the likelihood of having to raise taxes would be less: The US sellers of the land, buildings etc would be likely to invest most of the proceeds in US bonds or other investments, whose sellers would act...

US debt is not callable (no put option). The only options China has are : 1. Sell the US bond to someone else. 2. Wait till the US bond matures. What most people don't realize is that in either case China is then faced with the problem of doing something with US$ cash they received from either...

The formerly free delayed data version is $79/month starting August 2015

You need to stop falling into the trap of collective guilt : Blaming individual Greek citizens for Greek Sovereign debt makes no more sense than blaming individual Germans for WWII or Hitler or German debt defaults after WWI and WWII. Individual citizens have never been legally responsible for...

In theory a consistently profitable stock is visible to everyone and would be bid up by the market until it no longer outperforms the broader market. The same is not true for a successful retail trader, since only the broker employees can see the success, and unless broker employees start...

Someone else suggested a simpler approach to just delay all cancel orders by 0.1 seconds : this way HFT programs couldn't pull their order in response to a market order, and anyone else would hardly be impacted.

Can you give an example of how this could be abused ? Anyone placing a limit order would be free to place either type of limit order, so the playing field would remain level. For most traders the new limit order would have no downside and give you a leg up over HFT which would not be likely to...

A less intrusive way to keep HFT in check is to add a new type of limit order that cannot be cancelled in under 5 seconds. Lets call the new order type market making limit orders, which would jump ahead in the limit order queue of any regular limit orders at the same price. The SEC also...

The original story was about shorting stocks (NOT futures), so CFTC would not be involved.

The IBR provisions only apply to Federal student loans taken out after a certain date and also don't apply to private student loans : the latter are still subject to non-dischargeability in Bankruptacy, but are not government guaranteed.