Apple and the risks of trading 29,000 times per second
tech.fortune.cnn.com
Apple and the risks of trading 29,000 times per second
1–10 of 48 posts
Re: Apple and the risks of trading 29,000 times per second
#2I'm sorry, but this reads like some sort of PR hit job vs. BATS.
Re: Apple and the risks of trading 29,000 times per second
#3"In 2011, BATS accounted for more than one in 10 U.S. stock trades, processing an average of 29,000 trades per second. Against that kind of computer power, retail investors don't stand a chance."
Correct me if I'm wrong, but isn't BATS an exchange? Why are retail investors "competing" against the exchange? Is the solution some sort of paper and pencil exchange? Or maybe we can go back to jumping up and down and flapping our arms?
"Why, these investors ask, do false prints and fat finger trades always happen on the downside"
Because anybody with money can take advantage of it. On the upside, only people holding the stock can do so (unless you short the stock, but I've never tried nano timeframe shorting.)
Re: Apple and the risks of trading 29,000 times per second
#4How is making 29,000 trades per second good for the market? It seems like trading at that frequency should be illegal.
Re: Apple and the risks of trading 29,000 times per second
#5How is making 29,000 trades per second good for the market? It seems like trading at that frequency should be illegal.
I believe that number is all trades by all participants.
Re: Apple and the risks of trading 29,000 times per second
#6"In 2011, BATS accounted for more than one in 10 U.S. stock trades, processing an average of 29,000 trades per second. Against that kind of computer power, retail investors don't stand a chance." Correct me if I'm wrong, but isn't BATS an exchange? Why are retail investors "competing" against the exchange? Is the solution some sort of paper and pencil exchange? Or maybe we can go back to jumping up and down and flapp…
Retail 'investors' shouldn't have any issue with BATS if anything BATS provides liquidity, however retail 'traders' stand no chance because the computer is far better at technical analysis and pattern matching than the average trader. Retail traders never really stood a chance against institutions because retail trades the market rather than creating it like institutions do.
eg. A retailer can't execute a short squeeze but an institution can.
Re: Apple and the risks of trading 29,000 times per second
#7How is making 29,000 trades per second good for the market? It seems like trading at that frequency should be illegal.
Why should trading at that frequency be illegal?
What is the optimal amount of trades per second one should be making?
Once per second? Once per minute? Once per year?
Even if there were such a number how could any bureaucrat ever arrive at the optimal frequency any particular market participant should be trading at?
Re: Apple and the risks of trading 29,000 times per second
#8How is making 29,000 trades per second good for the market? It seems like trading at that frequency should be illegal.
Why should trading at that frequency be illegal? What is the optimal amount of trades per second one should be making? Once per second? Once per minute? Once per year? Even if there were such a number how could any bureaucrat ever arrive at the optimal frequency any particular market participant should be trading at?
Just add a sales tax on stock.
Re: Apple and the risks of trading 29,000 times per second
#9Marvin8 on that site had a great comment. Here it is:
What I'd like to know is what happens to customers who have resting orders near those "fat-finger" trades. If a customer had a sell stop-loss at $583, did he get stopped out of the market at that price or near $582? I'll bet he did. If another customer had a buy order in at $583, did he get filled on the way down? I'll bet he didn't. The broker wil ALWAYS come up with a bs excuse as to why a customer got a bad fill and never gets a good one. It's the way the industry works. That's why folks are complete suckers to get involved. The industry makes BILLION$ screwing its customers.
Re: Apple and the risks of trading 29,000 times per second
#10Marvin8 on that site had a great comment. Here it is: What I'd like to know is what happens to customers who have resting orders near those "fat-finger" trades. If a customer had a sell stop-loss at $583, did he get stopped out of the market at that price or near $582? I'll bet he did. If another customer had a buy order in at $583, did he get filled on the way down? I'll bet he didn't. The broker wil ALWAYS come up…
The guy who sold at 582 had to sell to somebody, so the buyer at 583 got his order too. That's why they're called trades. There's somebody on both sides.