Why The F@#k is this legal!? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Why spoofing is possible if it is not legal? 1 reply

Legal to change an EA that is not yours? 3 replies

Attachments: Why The F@#k is this legal!?
Exit Attachments

Why The F@#k is this legal!?

  • #1
  • First Post: May 6, 2015 5:46am May 6, 2015 5:46am
http://www.zerohedge.com/news/2015-0...ft-titan-virtu

Bastards!
Simplicity is the Ultimate Sophistication.
  • #2
  • May 6, 2015 5:49am May 6, 2015 5:49am
While 95% of retail traders struggle to be profitable, these bastards just frontrun everyone on the planet.
Simplicity is the Ultimate Sophistication.
  • #3
  • May 6, 2015 5:50am May 6, 2015 5:50am
what specifically ?

The Hedge fund trading in FX ?

WHy would that be illegal, is the real question
Learn, a forex trader must, unlearn and relearn he will.
  • #4
  • May 6, 2015 5:55am May 6, 2015 5:55am
Quoting COGSx86
what specifically ? The Hedge fund trading in FX ? WHy would that be illegal, is the real question
What hedge fund ? They are a front run fund company not a hedge fund.

They just front run you and me and any other here and they have had only one single day of loss since they operate, ask yourself if that's normal and fair ...
Simplicity is the Ultimate Sophistication.
  • #5
  • May 6, 2015 5:59am May 6, 2015 5:59am
Quoting broketrader
{quote} What hedge fund ? They are a front run fund company not a hedge fund. They just front run you and me and any other here and they have had only one single day of loss since they operate, ask yourself if that's normal and fair ...

so your jealous ?
Learn, a forex trader must, unlearn and relearn he will.
  • #6
  • May 6, 2015 6:03am May 6, 2015 6:03am
BT get you sh#$&t together. That is the only thing which will help you. Whatever Virtu might be doing is of no material impact on your ability to profit.
  • #7
  • May 6, 2015 6:04am May 6, 2015 6:04am
Quoting COGSx86
{quote} so your jealous ?
No, just impatient to see them in jail even if I know that it will not happen tomorrow.
And the question of this thread was not about me anyway.
Simplicity is the Ultimate Sophistication.
  • #8
  • May 6, 2015 6:08am May 6, 2015 6:08am
Quoting grin
BT get you sh#$&t together. That is the only thing which will help you. Whatever Virtu might be doing is of no material impact on your ability to profit.
I don't need help, again, it's not about me, I'm fine. I think that their trading is just not fair, that's all, and I think that it has material impact on our trading.
Simplicity is the Ultimate Sophistication.
  • #9
  • May 6, 2015 10:24am May 6, 2015 10:24am
Don't worry more hedgefunds trading Forex creates higher volatility and opportunity for day traders. Not a bad thing given that you can adapt to exploit it.
  • #10
  • May 6, 2015 10:58am May 6, 2015 10:58am
Quoting Forexville
Don't worry more hedgefunds trading Forex creates higher volatility and opportunity for day traders. Not a bad thing given that you can adapt to exploit it.

Hi forexville, I don't worry as there is nothing I can do against that. But I think you didn't understood what this guys do or what frontrunning is.They do not create any volatility, they just profit from it some nanoseconds before you at almost no risk.
Simplicity is the Ultimate Sophistication.
  • #11
  • May 6, 2015 11:05am May 6, 2015 11:05am
I too never understood how HFT trading is legal. Especially since they are allowed to slap bids and asks that no one else can see because they are able to price their orders down to fractions of pennies(in stocks).

Insider Trading - "Insider trading is the trading of securities (such as bonds or stock options) by individuals with access to nonpublic information about the securities.

Most HFT's are trading data that is not available to the public... The thing is they pay the sh*t out of politicians and law makers who then decide it is not illegal.


​I can almost guarantee one day HFT will be completely illegal once our government actually starts to properly regulate the markets. For now though, HFT is totally ethical and legal, leverage and pattern day trading is not. firms are free to get rich off of riskless money by exploiting data feeds while the retailers are left to starve trading with peanuts, no actual protection via hedges etc. or any real order flow since half of the volume in any market where HFT is present has been proven to be spoofed.

Thats my 2 cents.
  • #12
  • May 6, 2015 11:10am May 6, 2015 11:10am
HFTs do not rely on insider data. They actually experiment in real time with large volumes to see how the market reacts to various sways. And it keeps doing this...Essentially oscillating the price back and forth until the market is split in such a way that it yields a sudden inaccuracy in price which is when they bounce and buy or sell and ride the retracement for massive profits. They work the opposite way that Buffet operates...Buffet looks for undervalued businesses and pounces on them, the HFTers can create temporary undervalue in just about anything given the right luck and the right parameters, and then they too like Buffet can reap the benefits.
  • #13
  • Edited 11:29am May 6, 2015 11:18am | Edited 11:29am
Quoting Forexville
HFTs do not rely on insider data. They actually experiment in real time with large volumes to see how the market reacts to various sways. And it keeps doing this...Essentially oscillating the price back and forth until the market is split in such a way that it yields a sudden inaccuracy in price which is when they bounce and buy or sell and ride the retracement for massive profits. They work the opposite way that Buffet operates...Buffet looks for undervalued businesses and pounces on them, the HFTers can create temporary undervalue in just about...
I do not totally understand the HFT realm but all i know is...
They can see what orders are going to be filled and can jump in front of them. I do not know any retailers who are able to do this. And if I knew some CEO was going to buy 1000 shares of XXX and i got in before he released this order into the market because I knew it would happen, this is insider trading via front running, which is exactly what the HFT firms do.
  • #14
  • Edited 11:39am May 6, 2015 11:26am | Edited 11:39am
Quoting Forexville
HFTs do not rely on insider data. They actually experiment in real time with large volumes to see how the market reacts to various sways. And it keeps doing this...Essentially oscillating the price back and forth until the market is split in such a way thatorit yields a sudden inaccuracy in price which is when they bounce and buy or sell and ride the retracement for massive profits. They work the opposite way that Buffet operates...Buffet looks for undervalued businesses and pounces on them, the HFTers can create temporary undervalue in just about...
Yes, that's spoofing and that what thy guy from london did some weeks ago.

Now a word about frontrunning:

These guys buy order feeds from different exchanges, they are guaranteed to obtain (see) the orders several nanoseconds before they are ececuted, having the possibility to execute their own orders before any other from the books they observe. Now imagine when an order from a central bank or some hedge fund arrives, knowing that the order will move the market, its simple, they trade just before that order and get the profit after the big order is executed, that's front running, simple and at almost no risk.
Simplicity is the Ultimate Sophistication.
  • #15
  • May 6, 2015 11:36am May 6, 2015 11:36am
Another intriguing fact, why do you think that when big news are out, nfp or other, the market moves several tens of pips in the blink of an eye ?
Simplicity is the Ultimate Sophistication.
  • #16
  • May 6, 2015 11:55am May 6, 2015 11:55am
Here is an interesting article explaining the whole thing:
http://www.nanex.net/aqck2/4665.html
Simplicity is the Ultimate Sophistication.
  • #17
  • May 6, 2015 12:10pm May 6, 2015 12:10pm
Interesting discussion. I used to do news trading and the principle is similar. Is there anyway that a retail trader can get involved in this, or is it just millions of pounds in tech and tech brains to get to the table?
Forex rules
  • #18
  • May 6, 2015 12:14pm May 6, 2015 12:14pm
Quoting dsb104
Interesting discussion. I used to do news trading and the principle is similar. Is there anyway that a retail trader can get involved in this, or is it just millions of pounds in tech and tech brains to get to the table?
The firms literally build their office right next to the exchanges in order to be faster than their competitors. I imagine it is really hard to do it well if you are not working at one of these firms where transactional cost for trading with that kind of frequency will be much lower and disposable capital will be much higher than any retail trader could be offered.
  • #19
  • May 6, 2015 12:51pm May 6, 2015 12:51pm
What exchanges and feeds are we talking about in application to forex?

Quoting broketrader
{quote} I think that it has material impact on our trading.
Would you explain how?
  • #20
  • May 6, 2015 12:57pm May 6, 2015 12:57pm
Quoting grin
What exchanges and feeds are we talking about in application to forex?
HSBC, Citigroup, JPM, Royal bank of Scotland, UBS and the others we don't know about yet.


http://www.cnbc.com/id/101482959
Simplicity is the Ultimate Sophistication.
0 traders viewing now