I just read “Flash Boys” by Michael Lewis. Is the book accurate? Does “front-running” ever happen to retail traders?
Flash Boys
- Thread starter Steve Ladd
- Start date
Not front-running exactly, perhaps, but there are questions being asked about the treatment of retail orders by internalizing wholesalers, such as Citadel and KCG.
http://www.reuters.com/article/us-usa-stocks-probe-exclusive-idUSKCN0Y11CJ
http://www.wsj.com/articles/wall-st...-for-treatment-of-retail-investors-1462906454
http://www.reuters.com/article/us-usa-stocks-probe-exclusive-idUSKCN0Y11CJ
http://www.wsj.com/articles/wall-st...-for-treatment-of-retail-investors-1462906454
what kind of liquidity are you talking about?
I think these kinds of things should be forbidden, hft are just parasites who use the market only with their own interest.
http://www.bloomberg.com/news/artic...icted-of-spoofing-gets-three-year-prison-term
When HFTs have orders resting on the exchange that they never intend on allowing to be filled, it's standard operating procedure. When an individual does it, apparently they can end up in prison
But honestly, every order I place has a limit price. Either a counterparty (HFT or not) is willing to trade, or not. I believe that the more market participants there are, the better for all traders (e.g. smaller bad/ask spreads.)
When HFTs have orders resting on the exchange that they never intend on allowing to be filled, it's standard operating procedure. When an individual does it, apparently they can end up in prison
But honestly, every order I place has a limit price. Either a counterparty (HFT or not) is willing to trade, or not. I believe that the more market participants there are, the better for all traders (e.g. smaller bad/ask spreads.)
