Video 05: Program trading
* What is program trading? * High frequency trading * Spoofing * Front running & HFTs
Last updated
* What is program trading? * High frequency trading * Spoofing * Front running & HFTs
Last updated
They trade the discrepancies between charts, seeking for small profit, and accumulate.
Programs use small portion money to each buys.
what is happening in the chart:
Bulls buy close price, when they see rally, bar by bar.
but there's no follow-through at the top now,
then repeatedly selling out at the top,
finally they give up
They create fake orders to trick other firms, those firms make decisions on volumes will be spoofed.
It is illegal now, but there are always variations on-going nowadays.
They use a large order to buy just a little above you. they buy
Many many times a day to make a lot of money.
You and I makes up to only 5% in the market.
Firms never care about us, they make money from other firms.
