High-Frequency Trading:- Corporate super computers cornering share markets
Posted by Steve on 14 July, 2011
25 Comments
This item was filled under [ Stock Trading ]
Learn how US private traders are using servers which they place near to the Wall Street stock exchange, and by using super-computers download information from Wall Street, such as share offers given out by Wall Street, and the customers trading with stockbrokers inside the Wall Street stock exchange. The private traders can then quickly buy up the shares which a Wall Street customer is looking at, and sell them to the customer before other customers have the chance to buy the shares direct from Wall Street itself. It is done to make profit and is similar to cornering the market itself, and the US Government claims to be trying to stop it
Video Rating: 4 / 5
25 Comments on “High-Frequency Trading:- Corporate super computers cornering share markets”
That’s why I quit trading stocks and now trade futures. More fair playing field.
thanks so much..the trainer is excellent I must say, and funny too..loll
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THIS IS ILLEGAL AND WILL RUIN YOUR PRETTY PRETTY WORLD
Hey guys sorry to break it to you but the world is changing. from phone to mouse click to computers doing it for us you have to accept what is going on.
” WATSON IS THE FUTURE OF TRADING “
HEy guys sorry to break it to you but the world is changing. from phone to mouse click to computers doing it for us you have to accept what is going on.
” WATSON IS THE FUTURE OF TRADING “
@ssg10 Yep, that’s why the SEC has to impose obligations also to hft firms like they impose to a normal market maker. In my opinion, I think that it is frontrunning, but not illegal, there will always be someone on the mkt faster, more informed than you. And they also pay lots of $ to have that type of advantage.
@marchesedesade89 It is an illegal frontrunning, but SEC is too dumb and too busy watching porn at work to get into this type of high-tech frontrunning. They just have no staff smart enough for this. The smart staff already gets pulled and hired by GS, JPM, citadel, etc. When HFTs smell a market volatility, they will turn off and few real human market makers left to supply liquidity and then what happens ? FLASH CRASH like may 6,2010
@GlobalPrison That’s true, luckily the size of the investments on technology required for these strategies is so high that most of players are not able to afford it…moreover if you add increased competition, probably just big players will be able to use HFT, and hopefully they are more easily controlled. We’ll see whether the SEC will come up with something (hopefully before 2050!)
Nice to talk to you!
@marchesedesade89 — But nobody really knows how many rogue operators there are across the World now catching on to this. If we add up a few hundred million syphoned off each day it could add up to a lot of money over the course of the next ten years…potentially hundreds of billions each year…trillions over 10 years.
Who really knows?? Maybe we should rub shoulders with some G.Sachs big wiggies and see how much they make from HFT . I read somewhere they make 100 million a day from HFT.
@GlobalPrison Regulation has to be increased to avoid unfair behaviors, but still many researches has shown that HFT does not increase volatility in the long run and that they reduce spread. There’s no way to provide the same access to everyone to the market, just imagine the time it takes for my order to physically travel from NY to Sydney and you see that equal access is impossible. Of course they don’t do it because of this but to earn zillions of $
It’s just illegal, effectively cornering the markets..And who knows how many selfish rogues are doing this, taking the money and disapearing from sight forever, with the money..tax havens welcome large depositors, and the money doesn’t go back to the country or people it was taken from, it ermains hidden, in some rich corporate deposit box safe from the taxman. I don’t think they do it to benefit us the small investors, if that’s what you mean? We’ll be bailing out banks again sooner or later..
Retail investors like me and you should thank these algo traders, they don’t steal from us, and they allow us to have smaller spreads and more liquidity. What he is describing at first is called predatory trading, but trust me if I say that 99,9% of us will never even get in touch with them a single time in our lives…especially if you are selling the 15 shares you bought 20 years ago…
this should be illegal.
thats exaclty wot he is sayin ninuxy because it pings back n furth so quickly he has no chance to reach the right sellers but the HFT that sell to him at the highest algorithm.
I don’t get it. If the original institutional investor keeps bidding for, say, $24.55, and HF trader picks up and keeps pinging higher and higher, say, $24.60, $24.68… $25.00 and canceling orders rapidly, then how does this HF trader goes out and “buys” all the shares to sell it to the original bidder? If HF can get all those shares, then why can’t the bidder do the same?
That’s great. But what if the fundamentals are wong??
Is noone asking that question????????????
Doesn’t anyone sense another (even bigger) WALL ST CRASH COMING????
‘Sure things’????? REALLY??
curse these bastard algo traders!….
Computrr programmed HFT, its purpose to stop everybody out within a fraction of a second, i.e. stealing their money, all legal right?
Stockbrokers Play High-Frequency Trading in Wall Street like Bingo “Kentucky Horse Race-Trading?” Pucker game in Casio at Lat Vegas?
Sep 15, 2010
Brilliant
Re Flash Trading – if the members had two hours to decide as opposed to a half second, would the degree of fraud be any greater?
this should be illegal
In a way High Frequency trading is a way to get rid of limit orders
That was very interesting and very clear too
Thanks !