CANCEL orders. The most powerful order never discussed until now!

whats most important is right here..your fcm is known to have retail traders. and the computers tell from the ilink message code that its your order from that retail fcm..
 
example
 

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smallfil said:
Pointless really. I buy call and put options and numerous times, the market maker widens the spread between bid and ask say, it is now bid 2.00 ask 2.50. Market maker drops the bid to 1.00 ask 2.50. That is why as a retail trader, you should always use limit orders even if hitting the bid or ask prices. That way, you do not overpay. I just cancel my order when I see that. The next morning, chances are good, the same market maker now offers the option at bid 3.00 and ask 4.00. The key is waiting for it the next day. Market makers will raise the option prices as they are selling the cheap options they got from amateur retail traders, giving you a better fill assuming you are trying to get out! Do not be fooled and taken advantage of!
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the spread widens because limits are cancelled. duh
 
REDP1800 said:
it is a rstio. but you understand 80 to 90% of limit orders are cancelled in the futures.
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My understanding is not a ratio. I spoke to member services at the CME 2 years ago for an automated client. No manual trader can hit 20,000 message units per day. Even an automated client that needs to enter that many orders just needs to register as a MM. It is about 15 orders per second. What they want to avoid is spoofing and those that do not add to depth and liquidity from using bandwidth.

Anyone concerned with this should contact the CME.
 
Robert Morse said:
My understanding is not a ratio. I spoke to member services at the CME 2 years ago for an automated client. No manual trader can hit 20,000 message units per day. Even an automated client that needs to enter that many orders just needs to register as a MM. It is about 15 orders per second. What they want to avoid is spoofing and those that do not add to depth and liquidity from using bandwidth.

Anyone concerned with this should contact the CME.
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manual traders will get shutdown by the fcm because the fcm will be fined
 
REDP1800 said:
manual traders will get shutdown by the fcm because the fcm will be fined
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when u say cant hit 20,000 messages in a day? i hit 600 in 10 minutes a few nights ago and the trade desk called me to see what i was doing. i could manually put in 20k cancels a day..i was placing lots of orders in the book
 
also the rules change almost monthly so 2 years ago that you contacted the cme is an eternity. they will give you more clarification but of course it is not without lots of emails amd calls to get the info.
 
REDP1800 said:
when u say cant hit 20,000 messages in a day? i hit 600 in 10 minutes a few nights ago and the trade desk called me to see what i was doing. i could manually put in 20k cancels a day..i was placing lots of orders in the book
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Right, because it looks like market manipulation which they have systems to look for.
 
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