Quote from Random.Capital:
If you had a magic appliance that sidled up to a CME or Nasdaq or whatever market data feed...and could generate a trade request on one tick before the next tick comes out...
Would that impact the kinds of algos you would be interested in trying?
Quote from Random.Capital:
If you had a magic appliance that sidled up to a CME or Nasdaq or whatever market data feed...and could generate a trade request on one tick before the next tick comes out...
Would that impact the kinds of algos you would be interested in trying?
Quote from beachhouse:
co-location with servers=> front-running, being done by Goldman Sucks and other brokers for years.
a fraud committed by exchanges and brokers.
For many years, market makers have been doing that under the pretense of "making a market." they see your orders and act accordingly.
Quote from Rationalize:
Can you explain exactly how your orders are being seen?
If you mean, prices fall when you sell a lot, then I understand, but I wouldn't call that front running. Same thing happens if you try to sell a lot of anything. Buyers back off a bit, and let you come to them.
Yeah, if you believe front running occurs like that then that's pretty clearly illegal.Quote from beachhouse:
See=> that's a computer software matter. When an order is initiated, it has to be entered into the system, from your computer to the exchange. It travels for a distance, just like you walk from your home to the office.
When you walk out of your home, people can see you.
When you walk on the sidewalk, people can see you.
When you approach your office, people can see you.
When your order is logged into your computer, another computer can see you.
When your order goes through your broker's server, another computer can see you.
When your order goes from the broker's server to the exchange server, another computer can see you. (here is a fraud often committed by brokers: your order is internalized, never sent to the exchange by the broker)
Before your order reaches the exchange server, another computer can see you.
When I see you want to buy 1000 shares, I will buy BEFORE your order reaches the exchange, lifting the asking price by 1 cent or 2. When your order arrives, I sell you what I have just bought at the current asking price (remember I just raised the asking price), making some no-risk money.
If I keep doing that all day, I make a lot of money. That's why Goldman Sucks never lose in "trading." (front-running actually).
Quote from Rationalize:
Yeah, if you believe front running occurs like that then that's pretty clearly illegal.
There's nothing here to do with algo trading though.