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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
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jonflyfish
Penny Hoarding Member
USA
693 Posts |
Posted - 05/09/2010 : 01:43:20
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| 1- no, 2-yes, 3- no, 4- no, 5- no, 6- yes, 7- no, 8- somewhat |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
 Posted - 05/09/2010 : 08:32:39
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Very interesting. If true, then front-running orders by high-frequency trading algorithms is the root cause of the problem:
"Predatory market making practices are driving liquidity providers out of the market. Algorithmic systems constantly step in front of displayed liquidity providers, and discourage them from placing passive limit orders. They are programmed to automatically step in front of displayed limit orders, to be at the front of the line for execution. This practice is especially prevalent in thinner stocks. If a human trader places an order at $20.05, the algorithmic system automatically bids $20.06. If the human raises their bid to $20.07, the computer goes to $20.08. This discourages true liquidity providers, and they place less passive limit orders." 
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Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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brian0918
Penny Collector Member
USA
315 Posts |
Posted - 05/09/2010 : 09:20:19
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Zero Hedge could certainly be right about the cause of the sell-off, but that does not imply that the SEC should ban high-frequency trading. People should be free to trade however much they want for whatever reason they want - even on the basis of a computer algorithm. Simply put, the SEC should not exist.
As for the sell-off, it was to be expected. The increase in the Dow since March 2009 has been artificial - the result of government manipulation of the markets to reinflate the bubble. The sell-off is a good thing, not something that should be prevented through further SEC regulation, as Tyler Durden arbitrarily proposes. |
"The man who speaks to you of sacrifice, speaks of slaves and masters. And intends to be the master." -- Ayn Rand
Searched: $2230 Nickels; Liberty: 1; Buffalo: 4; War: 20; 2009: 2; 2010D: 8 |
Edited by - brian0918 on 05/09/2010 09:22:04 |
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copperhead57
Penny Collector Member
USA
255 Posts |
Posted - 05/09/2010 : 09:41:38
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quote:
Originally posted by jonflyfish
1- no, 2-yes, 3- no, 4- no, 5- no, 6- yes, 7- no, 8- somewhat
I tend to agree. |
copperhead57 |
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El Dee
Penny Hoarding Member
USA
547 Posts |
Posted - 05/09/2010 : 12:18:39
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Ha Ha Ha Ha Ha Ha Ha HA HAAAAA
What's the reason it went down on Friday?
Nobody cares about computers as long at the market is rising.
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Trust the government? Ask an Indian. |
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 05/10/2010 : 05:45:05
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quote:
Originally posted by brian0918
Zero Hedge could certainly be right about the cause of the sell-off, but that does not imply that the SEC should ban high-frequency trading. People should be free to trade however much they want for whatever reason they want - even on the basis of a computer algorithm. Simply put, the SEC should not exist.
well, its fraudulent even without the SEC for a customer to step in front of them before placing their order. this would be true of any market, for example your real estate agent. so it has less to do with the fact that an algorithm is being used than with the fact that the technology now allows unscrupulous brokerage houses or others can step in front of you lightning fast. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Edited by - Lemon Thrower on 05/10/2010 05:49:51 |
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8 Theories For Why The Stock Market Plunged ...
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