|visits||member for||2 years, 1 month|
|seen||Mar 5 '13 at 9:42|
Why do high frequency traders use rapidly cancelled limit orders?
No I was placing limit orders to get good execution. The fake bid always appeared 1 tick lower.For instance if some 20-30 lots were at 2001, suddenly some one would place 1000 lots at 2000 or 1999. I would place a sell order at 2002. And immediately place a buy order at 2000. The fake order would disappear soon and my order would get executed. This was only during dull hours. The quantity was less and the sudden appearance of the 1000 lot used to create some movement. But I wouldn't recommend it, as a couple of times, I was caught unaware and suffered some real loss trying to chase pennies:-)
|Why do high frequency traders use rapidly cancelled limit orders?|