you heard it here first

Originally posted by Dan da Stik


What he is saying is if they have 500 big S&P to sell, why should they take it to the pit. They go to ES - put 2500 in to sell at a price but you only see say 200. Someone buys 200, still 200 there, buy another 200, still 200 there, buy another 200, still another 200 there. No one can see their true size. Small daytraders would lose an edge. Don't ever forget the golden rule.
The guys with the gold make the rules.
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Well said da Stik.
 
Originally posted by aphexcoil


Learn to get around it.

In an age of high-powered computers and super-fast connections, you could easily program something that could detect "bid walls" or "ask walls."
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I agree, and with a good programmer this is easy to accomplish.

comp
 
Originally posted by nusrat
Sorry, but I don't follow you. Can't GSCO have reps in the pit who are equally capable of disguising their size?
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This may sound odd but its really true.

Think about this....Goldman has 500 cars to do. There are only several brokers that execute orders for them. Everyone knows who they are. Pit traders, after standing next to these guys day after day learn to read the body language and the patterns of the large brokers. IE. .. When Broker X gets a large order, he gets a certain look on his face or the tone of his voice changes.

Or, the behavior of the clerk at the Goldman Desk taking the order.

Even worse...if the order gets arbed in.. guys see it and they front run it. Technically, this is illegal and shouldn't happen. Believe me, it does.

Orders on the machine are completely devoid of these inherent inefficiencies.
 
This is totally true, the pit is very predictable when you are there.

comp


Originally posted by pythagoras


This may sound odd but its really true.

Think about this....Goldman has 500 cars to do. There are only several brokers that execute orders for them. Everyone knows who they are. Pit traders, after standing next to these guys day after day learn to read the body language and the patterns of the large brokers. IE. .. When Broker X gets a large order, he gets a certain look on his face or the tone of his voice changes.

Or, the behavior of the clerk at the Goldman Desk taking the order.

Even worse...if the order gets arbed in.. guys see it and they front run it. Technically, this is illegal and shouldn't happen. Believe me, it does.

Orders on the machine are completely devoid of these inherent inefficiencies.
More...
 
Originally posted by pythagoras


This may sound odd but its really true.

Think about this....Goldman has 500 cars to do. There are only several brokers that execute orders for them. Everyone knows who they are. Pit traders, after standing next to these guys day after day learn to read the body language and the patterns of the large brokers. IE. .. When Broker X gets a large order, he gets a certain look on his face or the tone of his voice changes.

Or, the behavior of the clerk at the Goldman Desk taking the order.

Even worse...if the order gets arbed in.. guys see it and they front run it. Technically, this is illegal and shouldn't happen. Believe me, it does.

Orders on the machine are completely devoid of these inherent inefficiencies.
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Yup ..... The interesting part of game at the MERC.

This will make things tougher for smaller traders IMHO: There are some benefits to owning a seat on the exchange ....

I personally never enjoyed being covered in human spit by the end of the trading day in markets like the S&P500 or the EURO.
Having adapted to all electronic trading some time ago I dont view the new "feature" as a big problem .....
 
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