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User Info SEC Takes Pulls From Bong, Issues Nonsense; entered at 2010-10-01 15:31:59
Josecitomadera
Posts: 554
Registered: 2009-03-20 Miami
Quote:
Still lacking sufficient demand from fundamental buyers or cross-market arbitrageurs, HFTs began to quickly buy and then resell contracts to each other – generating a "hot-potato" volume effect as the same positions were rapidly passed back and forth. Between 2:45:13 and 2:45:27, HFTs traded over 27,000 contracts, which accounted for about 49 percent of the total trading volume, while buying only about 200 additional contracts net.


1) EXACTLY, how are they able to buy and re-sell to each other without incurring actual costs? It states 27,000 contracts shifted back and forth with only 200 bought, HOW?

2)I see by this function how an appearance of liquidity is created via high volumes and how it induces the animal spirits since humans as still a primitive species becomes excited by flashing lights and loud bells.

Last modified: 2010-10-01 15:34:33 by josecitomadera

2010-10-01 15:31:59