Wall Street Cheats You in New Way
January 30th, 2018 at 3:26:48 AM
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spoofing. maybe not so new but much more of it now because of algorithm based computer trading.
spoofing is selling in an amount large enough to cause a price drop and then immediately buying back at a lower price
the story refers to futures contracts but I'd bet it happens a lot in equity trading too
https://www.washingtonpost.com/news/business/wp/2018/01/29/u-s-regulator-doj-announce-spoofing-charges-against-european-banks/?utm_term=.ec9c2e845309
spoofing is selling in an amount large enough to cause a price drop and then immediately buying back at a lower price
the story refers to futures contracts but I'd bet it happens a lot in equity trading too
https://www.washingtonpost.com/news/business/wp/2018/01/29/u-s-regulator-doj-announce-spoofing-charges-against-european-banks/?utm_term=.ec9c2e845309
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
January 30th, 2018 at 5:22:26 AM
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For Non-subscribers of WSJ, you can open that link in an incognito window to sidestep the paywall.
I'm surprised this sharp practice gets any attention, let alone penalties. Surely all we minnows know that here are sharks in the sea. Computer driven trading, even as premeditated as this is probably just a fact of life.
I'm surprised this sharp practice gets any attention, let alone penalties. Surely all we minnows know that here are sharks in the sea. Computer driven trading, even as premeditated as this is probably just a fact of life.
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
January 30th, 2018 at 6:46:38 AM
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Quote: OnceDearComputer driven trading, even as premeditated as this is probably just a fact of life.
In October that took another step forward with AIEQ, the Artificial Intelligence Equity ETF.
BOYD is currently their 8th highest holding, but as I recall it was 3rd about a week ago.
January 30th, 2018 at 8:44:57 AM
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Does this screw me over if I'm a "buy and hold for 20 years" type of investor?
January 30th, 2018 at 10:36:08 AM
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Quote: TigerWuDoes this screw me over if I'm a "buy and hold for 20 years" type of investor?
not much. even less if it's mutual funds. it's those who actively trade that are getting screwed the most. the more they trade, the more they get screwed. if they have a great talent in trading then it makes sense for them to trade. if not they're going to get creamed.
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
