HFT - how does it work and is there a way to participate? - page 3

 

Interesting article : High-frequency trading liquidity goes phantom again /Euromoney magazine

See which broker bought a HFT company

 
techmac:
Interesting article : High-frequency trading liquidity goes phantom again /Euromoney magazine See which broker bought a HFT company

Now why would a broker need a hft company? :):)

 
checkin:
Now why would a broker need a hft company? :):)

1. HFT company was a trading company. Meaning : for trading (the question is when a broker trades against who it is trading)

2. for artificial volume creation

3. for controlling the users trade

 
techmac:
1. HFT company was a trading company. Meaning : for trading (the question is when a broker trades against who it is trading)

2. for artificial volume creation

3. for controlling the users trade

4. for nothing good in the end

 
checkin:
4. for nothing good in the end

I think that the point 1 is the most important - I simply donor see a fair way of trading of a HFT company owned by a forex broker - it would be like putting money to your left pocket and taking more out from the right just to live you the impression that you actually did something

 
techmac:
I think that the point 1 is the most important - I simply donor see a fair way of trading of a HFT company owned by a forex broker - it would be like putting money to your left pocket and taking more out from the right just to live you the impression that you actually did something

They will tell us that it is for providing liquidity - with whose money?

 
checkin:
They will tell us that it is for providing liquidity - with whose money?

That whole liquidity rail is a fairy tail used to justify what they are doing. Forget about liquidity provided by HFT - it is like tossing the same dollar 1 million times - you still have just 1 dollar

 

A broker that is allowed to own HFT company on American soil and with US regulations is not a good sign at all. Forex is counting its last retail forex trader days, and we all should start thinking seriously what to do for the additional income

 
whisperer:
A broker that is allowed to own HFT company on American soil and with US regulations is not a good sign at all. Forex is counting its last retail forex trader days, and we all should start thinking seriously what to do for the additional income

Guys,

They are using HFT for their "special clients" (you have to pay to become a special client) That is a usual way how it is done : broker will not trade it's own money for more than one reason

 

That is sold as an account management service - nothing else. Nothing can be changed