High-Frequency Trading:- Corporate super computers cornering share markets

Learn how U.S. private traders are using servers which they place near to the Wall Street stock exchange, and by using super-computers download information from Wall Street, such as share offers given out by Wall Street, and the customers trading with stockbrokers inside the Wall Street stock exchange.
The private traders can then quickly buy up the shares which a Wall Street customer is looking at, and sell them to the customer before other customers have the chance to buy the shares direct from Wall Street itself. It is done to make profit and is similar to cornering the market itself, and the U.S. Government claims to be trying to stop it

Category:

News & Politics

Tags:

• high
• frequency
• trading
• stock
• share
• market
• corporate
• super
• computer
• algorithms
• capitalism
• greed
• private
• servers

[GlobalPrison]

Check out Max Keiser's video 'Keiser Report -Bankers and Aliens' . Max and Stacey Herbert talk on the shredding of decades of documents by the SEC...

[marchesedesade89]

Retail investors like me and you should thank these algo traders, they don't steal from us, and they allow us to have smaller spreads and more liquidity. What he is describing at first is called predatory trading, but trust me if I say that 99,9% of us will never even get in touch with them a single time in our lives...especially if you are selling the 15 shares you bought 20 years ago...

[GlobalPrison]

It's just illegal, effectively cornering the markets..And who knows how many selfish rogues are doing this, taking the money and disapearing from sight forever, with the money..tax havens welcome large depositors, and the money doesn't go back to the country or people it was taken from, it ermains hidden, in some rich corporate deposit box safe from the taxman. I don't think they do it to benefit us the small investors, if that's what you mean? We'll be bailing out banks again sooner or later..

[marchesedesade89]

@GlobalPrison Regulation has to be increased to avoid unfair behaviors, but still many researches has shown that HFT does not increase volatility in the long run and that they reduce spread. There's no way to provide the same access to everyone to the market, just imagine the time it takes for my order to physically travel from NY to Sydney and you see that equal access is impossible. Of course they don't do it because of this but to earn zillions of $

[GlobalPrison]

@marchesedesade89 -- But nobody really knows how many rogue operators there are across the World now catching on to this. If we add up a few hundred million syphoned off each day it could add up to a lot of money over the course of the next ten years...potentially hundreds of billions each year...trillions over 10 years.

Who really knows?? Maybe we should rub shoulders with some G.Sachs big wiggies and see how much they make from HFT . I read somewhere they make 100 million a day from HFT.

[KaliAndy2]

@marchesedesade89 they provide more liquidity only when its beneficial to them. its not about supply/demand anymore, only manipulation. buy size @ask and bids drop, spread widens and price drops. sell size, opposite happens. its nothing short of robbery. getting robbed 10 cents on 15 shares no biggie, try 1,000 shares 50 trades a day... HFTs are only good to their owners who write these programs to rip ppl off every single trade. markets were more efficient 10 years ago.

[GlobalPrison]

@KaliAndy2 - When a share plummets by 25%, 10 000 shares make flash traders huge profit when share price goes up. It's not only the usual suspects... You might have read the report on the C.I.A getting into buying/selling stocks and shares. If the C.I.A have an endless budget (the taxpayer), then they can buy and sell in mega-large quantity stock, the money is then banked into a hidden account and used to their discretion- hence they have funds when Congress might cut spending or deny funds...

[webbtz3591]

they remove liquidity from market.

[sirraju1]

Really liked this presentation, Extremely well presented. Thank you.

[morganthecelt]

Thank you for your answer "GlobalPrison". I understand you can't make french subtitles. But maybe you could make english subtitles? It would allow to me to understand at 100% your good videos and for French people to work their English too. It would be great. (sorry for my English and thank you for videos)

[morganthecelt]

Je serai très reconnaissant à la personne qui reprendrait cette vidéo avec des sous-titres français. Merci

[rorybz]

The main problem I see with HFT is that when the volume is way up, the market price tends to be artificially inflated, and I think that is what is propping up the price of stocks right now. If HFT were to be suspended, the market value would drop precipitously and then settle at a much lower value, like DJIA 8,000pts. It wouldn't be bottomless.

Where is the SEC? They're bought and paid-for. See the recent document-shredding scandal, and Matt Taibbi's article about the SEC revolving door.

[rorybz]

The answer to countering the HFT predatory market-making program is very simple. The HFT market-making program is looking for repetition. The buyer is buying a fixed block size, and the target price for each block size is the same. What the buyer needs to do is randomize his share block size so that ultimately the total order is filled but none of the block sizes are equal, and then the buyer needs to randomize the price of the shares within a pricing window so the total amount spent is $25k.

[spectrader]

The only people this theory serves is undisciplined suckers, i mean "traders", who have no concept of risk or money mgmt whom also refuse to accept responsibility for their own actions and decisions to put their money at risk without at first doing a careful study and analysis of the instrument to be traded. RT to what somebody above posted, "Retail investors like me and you should thank these algo traders, they don't steal from us, and they allow us to have smaller spreads and more liquidity."

[StockMarketFunding]

High-Frequency Trading = recent market crash = where is the SEC!