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In response to
"What did he figure out? -- nm"
by
Will Hunting
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High volume traders stealing trades microseconds before other investors and then reselling them.
Posted by
Volnelk
Mar 30 '14, 17:18
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The analogy he have was seeing four concert tickets on stubhub for $20 each, but when you order them, only getting two, but then searching again and the other two seats are still there but now they are $25.
Traders were stealing large transactions by being further up the digital line, and putting in their own orders to steal the transactions. Where they buy it at a price and resell it fractions of a second later at fractions of a cent profit, but they know the order is coming, because they've already seen it.
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Responses:
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Chucked! -- nm
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Dano
Mar 30, 17:33
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Listen all y'all, it's arbitrage -- nm
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Was Bar Was
Mar 30, 17:32
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In the 20's brokers would take an order from a client to buy, they'd buy it themselves and then sell it, only in those days it was an hour
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zeitgeist
Mar 30, 17:27
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I did a paper on this for my principles of finance class earlier this semester.
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znufrii
Mar 30, 17:25
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hey, that aint fair! -- nm
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mud
Mar 30, 17:22
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It's the Wall Street version of a cable modem helping with HSX trades in the late 90s.
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David
Mar 30, 17:21
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