Market Maker Tricks
- Thread starter froggie
- Start date
Very true...
Threei,
How do you know that those programs that shadow your orders do it because they know it's you (a successful trader)? I see it happening to me too when I place a limit order, and just assumed there are a lot of those programs out there that just try to steal fills from a human perhaps hoping to sell those fills back to the human later when the inside market has moved against the human. Thinking the way you do, it's almost flattery
How do you know that those programs that shadow your orders do it because they know it's you (a successful trader)? I see it happening to me too when I place a limit order, and just assumed there are a lot of those programs out there that just try to steal fills from a human perhaps hoping to sell those fills back to the human later when the inside market has moved against the human. Thinking the way you do, it's almost flattery
Yeah, some very bizarre stuff in the good old. I used to arb Selectnet, buying under the bid , hitting SOES. Trades took, oh, 1 second round trip.
Could make a fast 1/4 on 1000 shares that way.
Too good to last, though it did go for quite some time.
The efficiency of the market in the last 2-3 years is problematic, especially if you're looking for low risk trades.
Speaking if arbs, in the day, they would arb Instinet against SOES for big bucks. Inet was a seperate box, not displayed on L2. Imagine what that was like.
Could make a fast 1/4 on 1000 shares that way.
Too good to last, though it did go for quite some time.
The efficiency of the market in the last 2-3 years is problematic, especially if you're looking for low risk trades.
Speaking if arbs, in the day, they would arb Instinet against SOES for big bucks. Inet was a seperate box, not displayed on L2. Imagine what that was like.
Another embarassing question:
Do MM's use any signals that are useful to try and interpretate
for example - 100 share buy on the ask means they are looking for shares to buy
-200 share buy on the ask means that they really really want shares badly
-666 share sale on the bid - stock is going to tank
etc etc etc etc
thanks in advance
Do MM's use any signals that are useful to try and interpretate
for example - 100 share buy on the ask means they are looking for shares to buy
-200 share buy on the ask means that they really really want shares badly
-666 share sale on the bid - stock is going to tank
etc etc etc etc
thanks in advance
1. Who would they signal? Another MM? What for?
2. How would that another MM be able to tell who did that print, his co-conspirator or someone else?
3. Tracking such signals, how would you be able to tell print by suspect MM from print by anyone else? After all, there are way too many 100, 200 and odd prints of all kinds.
In short... forget all this wierd stuff, read the charts, work out your method of reading and trading. IMO.
Vad
2. How would that another MM be able to tell who did that print, his co-conspirator or someone else?
3. Tracking such signals, how would you be able to tell print by suspect MM from print by anyone else? After all, there are way too many 100, 200 and odd prints of all kinds.
In short... forget all this wierd stuff, read the charts, work out your method of reading and trading. IMO.
Vad
Market maker know if an order is retail account or institutional...I mean seriously like your 100 to 1000 lot order looks like an institutional order. Plus there are individuals called sales traders that have relationships with institutions and high net individuals. Institional orders can easily be up to 2.5 million shares. I used to be a market maker. Also, they dont know your account number. If you have an etrade account and go to buy, you send the order through etrade which in turn is routed to a market maker or ecn, whatever relationships they have in place.