High Speed Trading Unfair To Retail Traders

Quote from vingbel:

This is why less and less retail traders are making money. At this rate, no one will be able to make a living trading on their own.

http://www.nytimes.com/2009/07/24/business/24trading.html?_r=1&hp
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you opened your thread 22 minutes later with the same article as a thread entitled
high speed trading with robots. the latter had 3 responses

I guess your title appealed to the victimhood feeling or the give me attitude common to many americans.

the lack of a can do attitude is not a good sign for the future.
 
High frequency trading is bullshit okay. it's your typical musical chairs.

these high frequency traders make their money on swing traders and investors money and on the spread if any. 1 cent spreads 5 cents. etc

retail traders would be making their brokers rich ith high frequency trading with retail commissions.

Quote from vingbel:

This is why less and less retail traders are making money. At this rate, no one will be able to make a living trading on their own.

http://www.nytimes.com/2009/07/24/business/24trading.html?_r=1&hp
More...
 
I think the early posters that said hfts add liquidity to the market are completely wrong. When the markets go wild they switch off the hfts, and with the predatory manner they operate, they reduce market participation.
The exchanges are now completely beholden to these massive customers. Trading isn't fair, not much in life is, but it is a shame that the exchanges have no interest in leveling the playing field. Having one class of trader doing 70% of the volume is not healthy and seriously threatens market efficiency.
I sit back and watch the robot wars. Once they have mostly wiped eachother out I'll participate more in the market and add some real liquidity.
 
this article is completely disturbing. nasdaq has on multiple times assured me that no one can see my hidden orders and that they are completely hidden. apparently this is not true because there is a loophole that someone can pay for information to see a flash of the orders. if this is true i beleive that anyone who trades should get together and strongly consider a class action suit against nasdaq. i have repeatedly been told by firm that i was being paranoid and no one can see your orders, which is not true because my firm can see them and so can nasdaq, and now it appears nasdaq lets others see my hidden orders for a fee. i am in the process of contacting a securities lawyer to see what is legal and illegal about that
 
don't be be niave.

it's hidden from display only


Quote from andvtrade:

this article is completely disturbing. nasdaq has on multiple times assured me that no one can see my hidden orders and that they are completely hidden. apparently this is not true because there is a loophole that someone can pay for information to see a flash of the orders. if this is true i beleive that anyone who trades should get together and strongly consider a class action suit against nasdaq. i have repeatedly been told by firm that i was being paranoid and no one can see your orders, which is not true because my firm can see them and so can nasdaq, and now it appears nasdaq lets others see my hidden orders for a fee. i am in the process of contacting a securities lawyer to see what is legal and illegal about that
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Quote from vikana:

In the NYTimes article I found a quote that I find somewhat disturbing:

" a loophole in regulations allows marketplaces like Nasdaq to show traders some orders ahead of everyone else in exchange for a fee."

Does this really mean that Nasdaq is "selling" information on my order before it hits the orderbook? That would be outrageous.
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Didn't the old floor see paper coming too? Yes it wasn't fair but they got an advantage for liquidity?
 
Quote from Banjo:

http://www.zerohedge.com/article/li...-meltdown-will-happen-five-minute-time-period
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Love the HFT's. Hope it doesn't end.

Trying to lay off risk in the individual equities to hedge derivatives positions of all types, you have algos fighting each other tooth and nail, in microsecond time frames (milliseconds are yesteryear), to get to my order. You can't ask for more.

A lot of the complainers are mutual funds that have their orders sniffed out by the algos. Tough shit. Hire programmers like everyone else has had to do. (Although, I don't like the idea, per se, of orders just being flashed to select participants - but I'm not an expert on that individual topic and someone might be able to show me the logic of that practice as well).

I read the LimeWire-SEC letter in the link above. It contradicts itself in an important way. HFT's supposedly have unfair advantages that makes the game easier for them - but the letter goes on to mention the price of entry is instant death in the form of 200,000 unstoppable orders being entered in less than 2 minutes in the case of a machine malfunction. Go ahead and get involved in HFT for your easy profits.
 
I would be interested in seeing your Lawyers response
A class action sounds like a good idea....this is TOTAL GARBAGE

I notice tons of times when i try to bid to scoop offers and there is say 1000 lot there ...i'lll get 100 shares or it..or nothing

something i took it as it was my system..but other times when on SUPER ILLIQUID stocks....i felt i was being front run on since it wasnt like MSFT or something

this confirms my beliefs when it came to "scalping" we are at a MONSTER disadvantage

PM me if u go fwd with anything
 
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