Detailed market commentary at The Market Ticker
(The Year 2012 In Review)
You are not signed on; if you are a visitor please register for a free account!
|MarketTicker Forums Single Post Display (Show in context)||
User: Not logged on
|User Info||SEC Takes Pulls From Bong, Issues Nonsense; entered at 2010-10-01 14:31:59|
Registered: 2009-03-20 Miami
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 14:34:33 by josecitomadera