Say What?
Front-Running legal?
Well, not exactly. As a market outsider, I wouldn't know if Front-Running was still possible in this electronic day and age...But I can speculate that the greed in the heart's of men, and market makers, is quite possibly still there.
What I do know, as a Tape Reader, is that in today's electronic markets you needn't be a market maker or specialist to gain from similar profit opportunities available to those who run a book.
If, in today's electronic markets, the theorem that 'Buy Programs usurp supply and Sell Programs create supply' is true, then if you could monitor these programs in real time, you could extrapolate their effect on price (at least in the short-run) and play a similar game to a Front-Runner by knowing that enough Buy Programs were just run, that price, well gosh, it done just gotta go up a smidgen or better.
Thus, as a Front-Runner is illegally profiting from fore-knowledge 1/100 of a second before a trade, today's Tape Readers, can make similar trades, only 1/100 of a second after the trade is complete...
Kinda compelling, huh?
Happy Trading.
Front-Running legal?
Well, not exactly. As a market outsider, I wouldn't know if Front-Running was still possible in this electronic day and age...But I can speculate that the greed in the heart's of men, and market makers, is quite possibly still there.
What I do know, as a Tape Reader, is that in today's electronic markets you needn't be a market maker or specialist to gain from similar profit opportunities available to those who run a book.
If, in today's electronic markets, the theorem that 'Buy Programs usurp supply and Sell Programs create supply' is true, then if you could monitor these programs in real time, you could extrapolate their effect on price (at least in the short-run) and play a similar game to a Front-Runner by knowing that enough Buy Programs were just run, that price, well gosh, it done just gotta go up a smidgen or better.
Thus, as a Front-Runner is illegally profiting from fore-knowledge 1/100 of a second before a trade, today's Tape Readers, can make similar trades, only 1/100 of a second after the trade is complete...
Kinda compelling, huh?
Happy Trading.
Amazing site.
Thanks, webmaster.