3
votes
Whats the need of Executing brokers if Prime brokers are the protagonist?
A prime broker is like a General Practitioner doctor. Executing Broker is like a specialist. If you needed brain surgery, you would not have your GP do it. Executing brokers specialize in specific ...
- 474
3
votes
Accepted
How were High Frequency Traders able to front-run in this example from Flash Boys?
Michael Lewis is either being disingenuous here or exercising creative license with this story.
Spreads are wider than the edge of absorbing wholesale customer flow. Even if we take this to a further ...
- 303
2
votes
Getting incorrect options data with IB API. Missing real time market data subscription?
My mistake. The definition of the Option contract was wrong. So after changing the line:
...
- 51
2
votes
Whats the need of Executing brokers if Prime brokers are the protagonist?
In other words, is it too costly for PB to be an EB
as well?
Answering your second question first, PB's are EB's; they just provide an entire suite of products and services beyond just trade ...
- 4,368
1
vote
Does payment for order flow happen on non-OTC stock markets?
Best execution does not mean best execution on every trade. In addition delays and weaknesses in calculating the NBBO (National Best Bid and Offer), delays in transmission speeds for limit orders from ...
- 11
1
vote
How much do brokerage apps cost versus traditional brokerages?
Here is a detailed document from a SEC Lawsuit against Robinhood detailing Robinhood's execution practices:
Some choice quotes:
"For most orders of more than 100 shares, the analysis concluded ...
- 73
1
vote
Broker that allows algo trading, no pdt rule and a low minimum deposit
PDT (Pattern Day Trader) is an SEC rule. You will not find a US retail broker anywhere that allows you to surpass it.
If you were a professional with the proper licenses and had an account at a ...
- 4,368
1
vote
How brokers' spread costs work?
The spread, or Bid-Ask spread indicates the difference between the prices which market participants are willing to sell at (Ask) and willing to buy at (Bid).
If you are selling without any specific ...
- 458
1
vote
how to calculate/retrieve the number of sell orders (and buys orders as well) to detect iceberg orders
A short answer is to use reliable market data and a trading platform which doesn't wrap precious details in the market data into candles. Your algorithm is a reasonable, but is an approximation. A ...
- 1,022
1
vote
Accepted
How do I know what my portfolio weight constraints are given to me by my broker?
In the US, Prime Brokers will generally follow either Reg T rules or Portfolio Margining rules. For Portfolio Margining accounts, assuming the account is somewhat diversified (not everything in one ...
- 11.8k
1
vote
CFD Broker that only charges for earnings
that only charges for my profits - do you understand how CFDs work?
For the sake of simplicity, there are four aspects to CFD trading:
(1) bid/offer spread - differs on whether you're doing OTC ...
- 745
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