Is there a monopoly in the asymmetry of information?
- #2
- Last Post: Jul 19, 2019 7:32am Jul 19, 2019 7:32am
- Joined Dec 2018 | Status: Trader | 4,598 Posts
Hi Innovator,
(Just finishing watching an amazing game of AFL with the Dons getting up from 5 goals down in the 3rd qtr
).
Anyway, imo, as retail traders, the only information we generally possess is the historical arrangements of “last tick” which we visualise as our charts on a range of preferred timeframes to show these.
In that regard there is NO monopoly of information. And no asymmetry.
But where there IS an asymmetry of information (in the monopolistic sense) is when we talk about the collective trade information being placed by traders.
The broker. The brokers' Liquidity Provider. The Liquidity Provider's “final” Market Maker.
All these groups have access to the full trading platforms information (should they choose to use it).
What trades are pending, what stop losses are in place, and the big picture sentiment of all trader’s current positions (and account balance information).
In that sense there is definitely a monopoly in the asymmetry of information.
You could probably guess how ‘they” use all that information, futuristically.
How “we”, imo, as retail traders, intelligently use what information we can see historically (last tick builds across a chart), determines our longevity in this game.
all the best
Pete
(Just finishing watching an amazing game of AFL with the Dons getting up from 5 goals down in the 3rd qtr
).Anyway, imo, as retail traders, the only information we generally possess is the historical arrangements of “last tick” which we visualise as our charts on a range of preferred timeframes to show these.
In that regard there is NO monopoly of information. And no asymmetry.
But where there IS an asymmetry of information (in the monopolistic sense) is when we talk about the collective trade information being placed by traders.
The broker. The brokers' Liquidity Provider. The Liquidity Provider's “final” Market Maker.
All these groups have access to the full trading platforms information (should they choose to use it).
What trades are pending, what stop losses are in place, and the big picture sentiment of all trader’s current positions (and account balance information).
In that sense there is definitely a monopoly in the asymmetry of information.
You could probably guess how ‘they” use all that information, futuristically.
How “we”, imo, as retail traders, intelligently use what information we can see historically (last tick builds across a chart), determines our longevity in this game.
all the best
Pete